Question on cross default
Question to the RX guys, under a cross-default, say I have a pari passu note one maturing 2019 and 2023. In 2019 the earlier maturity defaults and hence triggers a cross default on the 2023. In a liquidation scenario, will the 2023 get pro rata of the liquidation proceeds? Or will 2019 still get it first given their earlier maturity?
I am not in RX but I see many cross defaults in financing contracts.
Given it is pari passu and there are no clauses specifically expliciting nothing about it, I expect that in a defaulting scenario maturity dates are not a factor and the 2023 note-holders will gain the right to be satisfied by the liquidation proceeds/acceleration rights.
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