Distressed publicly traded credit - case study help needed!
Appreciate if you could help with the below:
I've got a case study to give a recommendation on the publicly traded credit. As the company is in distress - they now trade way below par. How should I approach it?
- Is there right or wrong answer? E.g. if leverage falls below 10x then too risky investment. Or is it purely a situation where you need to make your own call?
- How to compute IRR?
- Should I build 3 statement model?
- Should I do LBO/DCF valuations (or that's not relevant for credit)?
- What slides should I include in the presentation?
Any tips would be super highly appreciated!
Thanks in advance!