medium · Private Credit & Debt portfolio-management-monitoring-workouts
A specialty ABL lender provides a facility secured by $10,000,000 of equipment with an 80% advance rate. Two years later, the equipment's Orderly Liquidation Value (OLV) has depreciated by 30%.
If the company defaults and the loan is fully drawn, what is the recovery?
- 70%
- 56%
- 100%
- 87.5%
Sign up free to see the explanation and track your rank →
More Private Credit & Debt portfolio-management-monitoring-workouts practice
- If the total Enterprise Value is $300M, the Senior Secured Debt is $250M, and the Senior U
- A private capital manager identifies $20M in tax savings fro… — If these savings are reali
- If the lender's cost of capital is 10%, what is the approximate 'Economic Loss' compared t
- What is the primary impact on the fund's performance multiples?
- What is the likely 'Unsmoothed' volatility of the portfolio?
- If NewCo's post-restructuring EV is $200M and it has $120M in new senior debt, what is the
- If the business is liquidated for $200M, what is the recovery rate for the Second Lien len
- If a Series A round subsequently values the company at an8.0M pre-money valuation with $4.