hard · Private Credit portfolio-management-monitoring-workouts
In a 'restructuring' scenario, an unsecured creditor holds $100M in face value of debt trading at $30 cents. In a debt-for-equity swap, they receive 40% of the NewCo equity.
If NewCo's post-restructuring EV is $200M and it has $120M in new senior debt, what is the creditor's 'recovery' relative to their purchase price?
- 32%
- 200%
- 106.7%
- 66.7%
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