hard · Private Equity pe-core
In a distressed restructuring, a company has a $200M first-lien debt,$100Msecond-lien debt, and50M unsecured debt. The reorganization value of the enterprise is estimated at 260M.
How much of the reorganized equity (assuming all debt below first-lien is equitized) will the second-lien holders receive?
- 100%
- 23%
- 60%
- 33%
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