Cross Default

Cross Default

A provision in some bonds stating that the issuer shall be considered in default if the issuer defaults on any other of its obligations or liabilities. This provides extra protection for bondholders.
References in periodicals archive ?
a cross default clause, and (ii) if tenant fails to replenish the security deposit after landlord has applied any part of it to any rent or additional rent default.
Finally, Onsite agreed to provide for cross default provisions in its security agreement which make clear, in the future, that a default by TCC on the Shawmut Bank loan would also constitute a default by Onsite on its debt to Cogenex as well as other normal and customary cross default provisions and negative loan covenants.
The facility includes cross default provisions and a change of control provision (with 30% or more voting control), which Fitch anticipates would be triggered by this transaction.
The renegotiation included the elimination of a Manville Corporation (NYSE: MVL) cross default and guarantee.
The Secured Credit facility has a cross default provision and limits payments on several items, most notably, dividends, capital expenditures and share repurchases.
While cross defaults exist between MEHC, EME and certain of its subsidiaries, there are no cross default provisions between MEHC and its ultimate parent, EIX or affiliate SCE.
The first-tier subordinate bonds, which represent 43% of total debt, incorporate customary protections against cross default that enhance the senior bonds.
has obtained waivers for the cross default provision in its primary $2 billion credit facility.
Such an action could trigger a cross default under the company's other outstanding bond issuances.
As previously announced, the Company recently received consent from the lenders under its $275 million secured credit agreement to extend the cross default deadline relating to Bally's financial reporting covenant defaults under its public bond indentures to August 31, 2005.
CHICAGO -- Bally Total Fitness Holding Corporation (NYSE: BFT) announced today that it has received consent from the lenders under its $275 million secured credit agreement to extend to August 31, 2005 the cross default deadline relating to Bally's financial reporting covenant defaults under its public bond indentures.
As part of the exchange, bondholders consented to exit amendments eliminating cross default clauses for holdouts of exchange eligible bonds.