What is Cross-default?
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.
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
Summary
Expert
Tim Skeet
Banker with more than 35 years experience in the financial markets. Tim has been an ICMA board member and an ECBC steering committee member. Tim is a Freeman of the City of London.
03:24
04:22
