medium · Private Credit 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%
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