medium · Private Credit & Debt portfolio-management-monitoring-workouts
A distressed investor buys a $100,000,000 Second-Lien loan at 30 cents on the dollar. In a restructuring, the loan receives $40,000,000 in new equity.
What is the investor's recovery percentage relative to their purchase price?
- 100%
- 40%
- 133.3%
- 10%
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