Credit Rating

I do not get this question!

[question removed by moderator]

Is not the total debt without defaulting $500,000, then why would I add the $200,000. As far as I understand, the $200,000 is the remaining debt that I will pay in case of default which is a part of the $500,000, so why would I add them together to get the value of the company’s total debt?

Can someone help me on that?