hard · Private Credit & Debt
A 'Unitranche' lender often uses an 'Agreement Among Lenders' (AAL) to bifurcate risk.
In a distressed scenario where the recovery is only 40% of the total loan balance, which lender usually suffers the first loss?
- The Last-out lender
- The First-out lender
- The equity sponsor
- Both lenders share the 40% recovery pro-rata
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