Restructuring & Distressed
Same $400/$300/$200/$100 structure, but distributable value is now $550M. Compute each class's recovery rate.
Model answer
Secured: claim $400M, gets $400M → 100%. Remaining $150M to senior unsecured ($300M claim) → recovers $150M → 50%. Nothing left for sub debt ($0 → 0%) or equity (0%). Senior unsecured is the…
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