Debt Financing Question 1 Beruntung Sdn Bhd has been experiencing cash flow problems. In 2018, it borrowed RM1 million f

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Debt Financing Question 1 Beruntung Sdn Bhd Has Been Experiencing Cash Flow Problems In 2018 It Borrowed Rm1 Million F 1 (38.53 KiB) Viewed 11 times

Debt Financing Question 1 Beruntung Sdn Bhd has been experiencing cash flow problems. In 2018, it borrowed RM1 million from Mercury Bank. The company secured the loan with the company's land, and the charge was registered with the Land and District Office but not with the Companies Commission of Malaysia (SSM). Later in 2019, Beruntung Sdn Bhd borrowed a further RM1 million from Mercury Bank. The company secured the loan using its book debt and registered the charge with the SSM. Recently, the court made an order for the winding-up of Beruntung Sdn Bhd on the application of Ezy Ringgit Sdn Bhd, a creditor who had, one year ago, granted the company a loan on a floating charge, secured on all the assets and undertaking of the company. The company registered the charge with the SSM, and a liquidator was appointed. Required: a) Compare two (2) types of charges granted by Beruntung Sdn Bhd to Mercury Bank. (4 marks) b) Discuss the fixed charge registered with the SSM in favour of Mercury Bank and the priority between charges in favour of Mercury Bank and Ezy Ringgit Sdn Bhd. (6 marks)