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Assume a company goes to bankruptcy. However, its business is still making money. So the...

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Finance

  1. Assume a company goes to bankruptcy. However, its business is still making money. So the stakeholders decide to do restructuring. The original assets of this company is $10 million. Suppose the companys debt is $6 million, where it owes the senior secured $2 million, the senior unsecured $3 million, and the subordinate $1 million. Now each of the stakeholders is going to hire a bank to evaluate the assets. If you are the senior secured, explain what is the best strategy to evaluate a new value for the assets which can benefit you most. How about if you are the senior unsecured, or subordinate, or the equity share holder?

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