Estimate recovery rates for debt in a restructuring scenario: 1. Asset Valuation (Going Concern): - Enterprise value range (distressed multiples) - Comparable distressed transactions - Breakup value analysis 2. Asset Valuation (Liquidation): - A/R and inventory recovery assumptions - PP&E liquidation value - Intangibles and IP value (if any) - Real estate/owned property value 3. Capital Structure Waterfall: - DIP financing (if applicable) - Administrative claims - Priority claims - Secured debt (1st lien, 2nd lien) - Unsecured debt - Subordinated debt - Equity 4. Recovery Estimates: - 1st lien recovery % - 2nd lien recovery % - Unsecured recovery % - Implied price at each recovery scenario 5. Fulcrum Security Analysis: - Identify fulcrum security - Value break at each tier - Sensitivity to EV assumptions 6. Restructuring Path: - Likely restructuring venue (out-of-court vs. Chapter 11) - Key stakeholder map - Timeline estimate - Comparable restructuring outcomes Output: Recovery matrix with probability-weighted expected recovery by tranche.