medium · Debt Capital Markets credit-ratings-risk
A company is restructured with a value of 1.2 billion. The liabilities are 800 million First Lien, 400 million Second Lien, and 400 million Unsecured.
If administrative bankruptcy expenses are $100 million (paid first), what is the recovery for the Second Lien?
- 100%
- 50%
- 75%
- 25%
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