medium · Corporate Credit Analysis
Frontier Tech defaults on its obligations. The enterprise value at the time of restructuring is determined to be $600M. The capital structure consists of a $200M Asset-Based Lending (ABL) facility, $300M in Senior Unsecured Bonds, and $200M in Subordinated Notes.
Following the strict absolute priority rule, what is the recovery for the Senior Unsecured Bonds?
- 100%
- 85.7%
- 33.3%
- 50%
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