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Suppose a firm is in default. The firm sold off all valuable assets (including collaterals) and raised total proceeds of $160 million. The following table
Suppose a firm is in default. The firm sold off all valuable assets (including collaterals) and raised total proceeds of $160 million.
The following table lists different classes of debt and the outstanding claim amount for each class (the amount the firm owes to each class).
| Debt classes | Outstanding Claim |
| Secured | $100 million |
| Senior Unsecured | $100 million |
| Subordinated Unsecured | $100 million |
What would be the recovery rate for the Subordinated Unsecured debt holders? please show work
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