Default & Restructuring: Claim, Recovery Scenarios and Expected Value
This lesson is part of the course
In this lesson
You calculate the lender's claim when Orbitile defaults, the recovery in three exit scenarios, the probability-weighted expected recovery, and compare it with the present value of a restructuring offer.
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Lessons in this course
- Term Sheet Basics: Draw, Interest-Only, Amortisation & Runway Extension (Chart) Locked
- Warrant Coverage: From % of the Loan to Number of Warrants Locked
- Effective Cost: Stated Rate vs All-in Cost with Fees Locked
- Lender Returns: Final Payment, Warrant Value & XIRR Locked
- Venture Debt vs Equity: Dilution and Founders' Value at Exit Locked
- Covenants & MAC Risk: Testing a Minimum-Cash Covenant Locked
- RBF vs Venture Debt vs Equity: Which Is Cheapest at Which Exit? (Chart) Locked
- Default & Restructuring: Claim, Recovery Scenarios and Expected Value Locked