Restructuring & Distressed
Quick recovery math: $1,000 of total claims, EV = $600. Stack: $400 first lien, $400 senior unsecured, $200 subs. Give recoveries and identify the fulcrum.
Model answer
Waterfall $600. First lien $400 → covered 100% ($400). Remaining = 600 - 400 = $200 against $400 senior unsecured → covered $200/$400 = 50%, so SENIOR UNSECURED is the fulcrum (50…
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