Derivatives · glossary
The borrowing that counts for cross default. For Atlas the Schedule expressly includes its loan, which is why the loan's covenant breach became a default under the swap. Definition: Specified Indebtedness · Chapter 8
Explained in Chapter 8, The First Winter: Events of Default, Cross Default and the Two Hats, of Derivatives.
Two defined terms do the work, and the Schedule fills in both. Specified Indebtedness is the borrowing that counts. The Threshold Amount is how much of it must be in default before the limb fires.Read Chapter 8, The First Winter: Events of Default, Cross Default and the Two Hats →
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obligations, present or future, in respect of borrowed money, as extended or narrowed for a party by Part 1(c) of the Schedule;Read the definition in the document →
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