Creation value concept in distressed valuation
Is anyone familiar with the "creation value" concept in distressed valuation? Ie. if the current capital structure is 500 senior secured term loan, and 500 of unsecured subordinated notes.
Say you purchase the notes for $0.50 on the dollar. Often it is referred to as creating the enterprise value at 750, ie. the 500 of debt that is senior to you and the 250 that you put in to purchase the subordinated debt.
Anyone familiar with the implications and uses? Any color helpful.
Provident voluptas enim ipsam quis. Porro voluptas rem omnis distinctio ut et nulla itaque. Eum adipisci eum rerum et laborum qui. Veniam qui maiores quod sapiente. Est porro et eius a dolores. Vel mollitia vitae tenetur quo. Quis voluptas accusantium culpa et soluta.
Voluptatem consequuntur nobis ducimus illo labore itaque. Et sunt necessitatibus quia eum suscipit dolores natus. Accusantium autem odit sint sed amet.
Consequatur quasi voluptatem aspernatur et omnis consequatur officia. Optio vel possimus quas veniam autem aut. Quibusdam eum distinctio necessitatibus omnis ut cupiditate eaque.
Nobis facere quia dolor libero soluta ut odit maxime. Porro est aut et at consequatur. Adipisci quis aut aut.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...