Cross-Acceleration

Covenants

Turkish: Çapraz Muacceliyet

Short definition

Cross-acceleration lets this pack be accelerated if another debt is actually accelerated. It triggers later than cross-default; it still merges the maturity wall into one day.

Detailed explanation

The other creditor’s acceleration notice pulls this pack forward. If a waiver stops acceleration, this clause may not fire.

For the CFO: cross-default contagion is at breach, cross-acceleration at enforcement. Both belong on the same map.

Why it matters for the CFO

A bond acceleration turns the bank loan into overnight debt.

How to read it

If it has not fired, the other pack is in discussion and this pack still stands — you have time, not a guarantee.

Related calculators

Güven Sayılgan’s writing on this topic

Read these first

What to learn next

  1. Cross-Default
  2. Covenant Breach
  3. Maturity Wall
  4. Refinancing Risk

Definitions are educational. They are not investment, credit or tax advice.