hard · Private Equity pe-core
In a distressed restructuring, a company has an EV of $300M and total debt of $400M (consisting of $250M senior secured and $150M unsecured).
If the senior secured debt is refinanced at par with new debt, and unsecured creditors receive 100% of the new equity, what is the 'loan-to-own' recovery value for the unsecured creditors?
- $0M
- $50M
- $150M
- $300M
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