Revelation Co. is an industrial equipment manufacturer, with 872 million in total assets, and 696….
Revelation Co. is an industrial equipment manufacturer, with 872 million in total assets, and 696 million in total liabilities. 365 million of assets is industrial equipment loans, loans made by the company to its customers to finance their purchase of Revelation’s equipment. On May 15, 2015, the company establishes Revelation Trust, an SPV for the purpose of securitizing its equipment loan portfolio, and sells off its equipment loans to the SPV.
The SPV issues 5 year bonds in the following classes:
|
Class |
Par value (in millions) |
|
A (senior) |
162 |
|
B (subordinated) |
29 |
|
C (subordinated) |
— |
|
Total |
365 |
In June 2018, Revelation Co. files for bankruptcy reogranization, and its creditors get on average 56 cents on the dollar on its outstanding liabilities.
What is the amount of loss by class B bondholders in the SPV as a result of the bankruptcy? Enter answer in millions.
Revelation Co. is an industrial equipment manufacturer, with 872 million in total assets, and 696…
