medium · Corporate Credit Analysis cap-structure
A credit analyst examines a $500M bond issued by a HoldCo. The HoldCo has no operations, and its only asset is 100% equity in an OpCo. The OpCo has $300M of its own bank debt.
In a liquidation where the OpCo is valued at $450M, what is the recovery for the HoldCo bondholders?
- 90%
- 30%
- 56%
- 0%
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