hard · Private Credit & Debt portfolio-management-monitoring-workouts
A distressed investor purchases a $100 million Senior Unsecured claim for $45 million. In a restructuring waterfall, 280 million of EV is available. Priority claims are $10 million and Senior Secured debt is $200 million. Calculate the investor's expected recovery dollar amount and IRR if the deal closes in 12 months.
- $30 million; -33.3%
- $45 million; 0%
- $100 million; 122.2%
- $70 million; 55.6%
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