medium · Corporate Credit Analysis distressed
A borrower has $300M of senior debt at a subsidiary (OpCo) and $200M of senior debt at the parent (HoldCo). The OpCo generates all the group's cash flow.
In an OpCo liquidation that nets $350M, how much value is available to HoldCo creditors?
- $200M
- $0M
- $140M
- $50M
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