hard · Corporate Credit Analysis distressed
A borrower executes a 'Serta-style' uptiering exchange. A consenting group provides $100M of new super-priority debt and exchanges $400M of existing holdings for new super-priority debt.
If the non-consenting minority holds $500M of the old 1L debt and the restructuring enterprise value is $450M, what is the minority's recovery?
- 45%
- 10%
- 90%
- 0%
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