Restructuring & Distressed
If total distributable value is $700M, and the capital structure is $400M secured debt, $300M senior unsecured, $200M sub debt, and $100M equity—what are the recoveries and which is the fulcrum security?
Model answer
Waterfall: secured gets $400M (100% recovery). Remaining $300M goes to senior unsecured, which has a $300M claim—so it recovers exactly $300M (100%). $0 remains for sub debt (0%) and equity (0%).…
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