medium · Corporate Credit Analysis cap-structure
A holding company, ParentCo, has $500M in debt. Its only asset is 100% of the equity in OpCo. OpCo has $1.5B in senior secured debt and $2.0B in assets.
In a liquidation where OpCo assets are sold for1.6B, what is the estimated recovery for ParentCo creditors?
- 0%
- 20%
- 100%
- 32%
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