medium · Private Equity pe-core
In a distressed restructuring of RetailCorp, the reorganization enterprise value is estimated at $700M. The capital structure consists of $400M in first-lien debt, $300M in second-lien notes, and $200M in senior unsecured notes.
Under the absolute priority rule, which security is the 'fulcrum security'?
- First-lien debt
- Second-lien notes
- Common equity
- Senior unsecured notes
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