Restructuring & Distressed
Same structure ($300 first lien, $300 senior notes, $200 subs) but EV is now only $450. Where does the fulcrum move?
Model answer
First lien $300 → fully covered, 100%. Remaining = 450 - 300 = $150 against $300 of senior notes → only half covered, so the SENIOR UNSECURED NOTES are now the fulcrum,…
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