What is Cross-default?

What is Cross-default?

Tim Skeet

35 years: Debt capital markets

Cross-default is a common clause in borrowing documentation that allows creditors to demand repayment if it defaults on one of its obligations. Join Tim in this video where he takes us through this concept in more detail.

Cross-default is a common clause in borrowing documentation that allows creditors to demand repayment if it defaults on one of its obligations. Join Tim in this video where he takes us through this concept in more detail.

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What is Cross-default?

3 mins 16 secs

Overview

A cross-default clause in a borrowing document ensures that all creditors are allowed to demand repayment if the borrower formally defaults on one of its borrowings.

Key learning objectives:

  • Define cross-default

  • Explain the purpose of a cross-default clause

  • Explain when a company can be declared to be in technical default

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Summary
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