hard · Corporate Credit Analysis
Atlas Infrastructure has a debt stack with a $300M senior secured loan and $200M in senior unsecured notes. In a reorganization, the enterprise value is exactly $400M. The plan gives unsecured holders 5% recovery to obtain their vote.
What must the secured lenders have done?
- Suffered a 'cramdown'
- Found a 'New Value' exception
- Followed the Absolute Priority Rule strictly
- Granted a 'gift' from their priority recovery
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