medium · Corporate Credit Analysis
Sentinel US Inc. is a subsidiary of Sentinel plc. Sentinel US has issued $600M in unsecured notes. Sentinel plc has issued $500M in HoldCo notes.
If the US subsidiary defaults and its assets are valued at $400M, and no parent guarantees exist, what is the recovery for the HoldCo notes?
- 100%
- 80%
- 0%
- 66%
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