Major Default

One of the few Events of Default that can stop a certain funds drawing: non-payment, insolvency, insolvency proceedings, or unlawfulness and repudiation. Each must concern an Obligor, so trouble at the company being bought does not count. Definition: Major Default · Chapter 4

Explained in Chapter 4, From Term Sheet to Signing, of Finance Deals & Syndicated Lending.

Chapter 1 and this glossary are open to everyone; the whole edition is free to read with a free account until 31 January, and it stays open to an account opened by then.

As defined in the training facility agreement

an Event of Default under clause 19.1 (Non-payment), clause 19.5 (Insolvency), clause 19.6 (Insolvency proceedings) or clause 19.8 (Unlawfulness and repudiation), in each case in relation to an Obligor only;

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Related terms

Where this term lives

This term is part of one complete fictional deal, with every document attached and a test after every chapter. Open Finance Deals & Syndicated Lending → · All terms A–Z →