Others – Default in Payment


Does a listed issuer have to make an immediate announcement when its 49% associated company defaults in payment of either interest or principal sums but the associated company’s bankers do not issue any notices/demand letter?

Pursuant to paragraph 9.19A(1)(b) of the Main LR, any such default in payments (as envisaged in the loan/credit facility agreement) including by an associated company of a listed issuer which is material (i.e. vis-à-vis the group) would require immediate announcement irrespective of whether a notice or demand has been issued by the bankers.