Home > Terms > English (EN) > Event of Default
Event of Default
The failure of a company to satisfy its contractual agreements and covenants in loan agreements and mezzanine securities documents. Common events of default include failure to pay principal, interest, or dividends when due; violation of the company's representations, warranties, or covenants; or becoming insolvent. Securities documents provide that upon an event of default, investors have specified remedies that can be exercised, including increased interest rates or dividends, the ability to take possession of collateral, or, in extreme cases, the ability to control the company through electing a majority of the board of directors. Certain events of default can be remedied by payment of money or otherwise, and companies sometimes have contractual rights to fix the default within a specified time period called the cure period or the grace period. If the event of default is remedied within the cure period, then the company is no longer in default and the remedies are no longer available. Some events of default constitute breaches of trust that cannot be restored, such as the intentional violation of a covenant by a company. For these latter kinds of events of default, there are usually no cure periods or methods for the company to get back in compliance so that all of the investors' remedies are exercisable.
- Part of Speech:
- Synonym(s):
- Blossary: Finance Investment
- Industry/Domain: Financial services
- Category:
- Company:
- Product:
- Acronym-Abbreviation:
Other Languages:
Member comments
Terms in the News
Billy Morgan
Sports; Snowboarding
The British snowboarder Billy Morgan has landed the sport’s first ever 1800 quadruple cork. The rider, who represented Great Britain in the 2014 Winter Olympics in Sochi, was in Livigno, Italy, when he achieved the man-oeuvre. It involves flipping four times, while body also spins with five complete rotations on a sideways or downward-facing axis. The trick ...
Marzieh Afkham
Broadcasting & receiving; News
Marzieh Afkham, who is the country’s first foreign ministry spokeswoman, will head a mission in east Asia, the state news agency reported. It is not clear to which country she will be posted as her appointment has yet to be announced officially. Afkham will only be the second female ambassador Iran has had. Under the last shah’s rule, Mehrangiz Dolatshahi, a ...
Weekly Packet
Language; Online services; Slang; Internet
Weekly Packet or "Paquete Semanal" as it is known in Cuba is a term used by Cubans to describe the information that is gathered from the internet outside of Cuba and saved onto hard drives to be transported into Cuba itself. Weekly Packets are then sold to Cuban's without internet access, allowing them to obtain information just days - and sometimes hours - after it ...
Asian Infrastructure Investment Bank (AIIB)
Banking; Investment banking
The Asian Infrastructure Investment Bank (AIIB) is an international financial institution established to address the need in Asia for infrastructure development. According to the Asian Development Bank, Asia needs $800 billion each year for roads, ports, power plants or other infrastructure projects before 2020. Originally proposed by China in 2013, a signing ...
Spartan
Online services; Internet
Spartan is the codename given to the new Microsoft Windows 10 browser that will replace Microsoft Windows Internet Explorer. The new browser will be built from the ground up and disregard any code from the IE platform. It has a new rendering engine that is built to be compatible with how the web is written today. The name Spartan is named after the ...
Featured Terms
Coptic Christians
"Coptic" is derived from a Greek term meaning "Egyptian." They share many beliefs and practices with the Roman Catholic Church and ...
Contributor
Featured blossaries
mailmeddd123
0
Terms
2
Blossaries
0
Followers
Top 20 Website in the World
stanley soerianto
0
Terms
107
Blossaries
6
Followers
Programming Languages
Browers Terms By Category
- Bread(293)
- Cookies(91)
- Pastries(81)
- Cakes(69)
Baked goods(534) Terms
- Manufactured fibers(1805)
- Fabric(212)
- Sewing(201)
- Fibers & stitching(53)
Textiles(2271) Terms
- Pesticides(2181)
- Organic fertilizers(10)
- Potassium fertilizers(8)
- Herbicides(5)
- Fungicides(1)
- Insecticides(1)
Agricultural chemicals(2207) Terms
- General law(5868)
- Contracts(640)
- Patent & trademark(449)
- Legal(214)
- US law(77)
- European law(75)
Law(7373) Terms
- Lingerie(48)
- Underwear(32)
- Skirts & dresses(30)
- Coats & jackets(25)
- Trousers & shorts(22)
- Shirts(17)