medium · Corporate Credit Analysis cap-structure
A corporate group has an operating subsidiary (OpCo) and a parent holding company (HoldCo). HoldCo issues 'Double-Dip' notes.
Which of the following best describes the recovery path for HoldCo creditors in this structure?
- An unsecured claim solely at the Parent level
- A direct first-lien claim on OpCo's fixed assets
- Pledge of an intercompany note plus residual equity
- A pari passu claim shared with OpCo trade creditors
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