hard · Private Equity pe-core
In a distressed restructuring scenario, a company has a liquidation enterprise value (EV) of $700M. The capital structure consists of: $400M first-lien debt, $300M second-lien debt, and $250M senior unsecured notes.
Which security is the 'fulcrum security' and what is its projected recovery rate?
- Senior Unsecured; 20% recovery
- Second-Lien; 66.7% recovery
- Second-Lien; 33.3% recovery
- First-Lien; 100% recovery
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