hard · Private Equity pe-core
An investor acquires a $2M position in the Senior Unsecured Notes of a distressed company. The capital structure consists of $200M in Senior Secured debt (trading at 85%), $100M in Senior Unsecured Notes (trading at 45%), and $75M in Subordinated Notes.
If the restructuring enterprise value is determined to be $280M and administrative claims are $10M, what is the recovery value of the investor's $2M position?
- $0.9M
- $2.0M
- $0.0M
- $1.4M
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