Can anyone explain about “post reorg equity”?

Hi. As I said above, I’d like to ask you guys about “post reorg equity”. I heard it is a kind of senior loan with conditions, but I cannot figure out exactly what it is really. Could you explain the concept and practical use of it? Thank you in advance

3 Comments
 

Post reorg equity usually refers to the division of equity after a restructuring / recapitalization. E.g. a firm is burdened with too much debt and the company cuts an out of court deal with its unsecured noteholders so that they equitize a portion of their debt to become majority shareholders. In this case we say the unsecured noteholders become majority holders of the post reorg equity. Unsure what this has to do with your explanation above

 
Most Helpful

I’m hindsight you might be thinking of DIP loans - Debtor In Possession loans which are a feature of Chapter 11 bankruptcies. In such a case, some stakeholder such as an existing lender is incentivized to provide expensive, super senior financing to the company in bankruptcy. This is as they already have a stake in the bankruptcy, will receive interest on this new super senior loan which will have to be paid out before any other creditor gets recovery. The company is able to receive financing so that they can function as a going concern and exit bankruptcy without laying off thousands of people / liquidating

 

Similique similique delectus quis velit voluptatem assumenda. Soluta natus aut id porro sapiente similique. Et alias maiores mollitia doloremque delectus id. Consectetur vel vel est voluptatem.

Career Advancement Opportunities

June 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.8%
  • JPMorgan 01 98.2%
  • Guggenheim Partners 01 97.7%
  • Morgan Stanley 07 97.1%

Overall Employee Satisfaction

June 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Morgan Stanley 01 98.8%
  • Evercore 01 98.2%
  • BMO Capital Markets 12 97.6%
  • Banco Santander 01 97.1%

Professional Growth Opportunities

June 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Evercore No 98.8%
  • Morgan Stanley 05 98.2%
  • JPMorgan No 97.7%
  • BMO Capital Markets 12 97.1%

Total Avg Compensation

June 2026 Investment Banking

  • Vice President (14) $434
  • Associates (43) $259
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (22) $179
  • Intern/Summer Associate (13) $156
  • 1st Year Analyst (75) $151
  • Intern/Summer Analyst (65) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
kanon's picture
kanon
99.0
5
DrApeman's picture
DrApeman
98.9
6
dosk17's picture
dosk17
98.9
7
CompBanker's picture
CompBanker
98.9
8
GameTheory's picture
GameTheory
98.9
9
Betsy Massar's picture
Betsy Massar
98.9
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”