hard · Corporate Credit Analysis distressed
A 'J.Crew' asset drop-down occurs where 200.0 million of IP is moved to an unrestricted sub. The sub then issues $150.0 million in new debt. In liquidation, the IP is worth $180.0 million and the main company assets are $300.0 million. There is $500.0 million of existing debt.
What is the recovery for the existing debt?
- 60.0%
- 66.0%
- 36.0%
- 96.0%
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