medium · Corporate Credit Analysis distressed
In a distressed restructuring, a firm's Going-Concern Enterprise Value is estimated at $800 million after administrative costs. The capital structure consists of a $200 million ABL (first-priority on current assets), $450 million in First-Lien Term Loans, and $300 million in Senior Unsecured Notes.
Assuming the ABL is fully covered by its collateral, what is the estimated recovery for the Senior Unsecured Notes?
- 25%
- 100%
- 0%
- 50%
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