Cross Default

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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 ?
As a result of the default on the Langat Notes, 1MDB confirms that cross defaults have been triggered on the 1MDB RM5billion Sukuk due 2039 (1MDB Sukuk) and the RM2.
There is no 1MDB cross default on an RM800 million loan from the Social Security Organisation (SOCSO Loan).
VLI guarantees the debt of Valero Logistics and Kaneb and the debt instruments for the two operating partnerships have cross defaults, closely linking the ratings.
The Facilities also contain customary representations and warranties (including those relating to organization and authorization, compliance with laws, absence of defaults, material agreements and litigation) and customary events of default (including those relating to monetary defaults, covenant defaults, cross defaults and bankruptcy events).
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.
25 percent senior notes were cured upon repayment and all existing cross defaults and/or cross accelerations were eliminated upon repayment of the 6.
The Working Capital Credit Facility also contains customary representations and warranties (including those relating to corporate organization and authorization, compliance with laws, absence of defaults, material contracts and litigation) and customary events of default (including those relating to monetary defaults, covenant defaults, cross defaults, change of control and bankruptcy events).
Unless the Company can successfully restructure its indebtedness, sell additional imaging centers or otherwise obtain liquidity in the short term, the failure to make the payments described above and other payments that are due, the related defaults and potential cross defaults, the lack of working capital and the inability to incur additional debt will have a material adverse effect on the Company's ability to maintain its operations, as well as its financial condition.
This failure constitutes a default under these notes and may also constitute a cross default under other of the Company's debt instruments which could entitle the holders of such instruments to accelerate their maturity.