Download the attached excel template. You will require it for the next three questions. Excel file download: Lending to Complex Structures - Liquidation_Scenerio (BLANK).xlsx Assume a net realizable value of 50% on the liquidation of assets for the chained group. Also, assume that the liabilities would be paid out pari passu upon liquidation.

What % of their outstanding balances will the lender for Finco Ltd. expect to be paid out upon liquidation?

56.47%

100%

50%

0%

Parental Ltd. Liabilities & Owners Equity Equity Debt Assets 100 Investment in Real Estate Ltd. 100 Investment in Finco Ltd. Assets 200 100 75 25 200 Total Real Estate Ltd. Liabilities & Owners Equity Equity Debt Due to Finco Ltd. Total Assets 100 Investment in Assembler Ltd. (50%) 400 Assets 340 840 200 640 840 Finco Ltd. Liabilities & Owners Equity Equity Debt Assets 125 Investment in Assembler Ltd. (50%) 475 Assets Due from Real Estate Ltd. 200 60 340 600 Total 600 950 Assembler Ltd. Liabilities & Owners Equity Equity Debt Trade payables Total Assets 600 Assets 270 80 950 950