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Ironclad Steel Products · ICSP

DEMO DATAUNDERWRITING ASSUMPTIONHOLD

Recovery waterfall by scenario

ANALYST PROJECTION

Recovery value = MAX(going-concern value, liquidation value) + cash, less administrative costs, then distributed by seniority (strict absolute priority; equal ranks pari passu). Going concern = distressed EV/EBITDA multiple × EBITDA at the valuation event; liquidation = asset base × (1 − decline) × liquidation recovery. Valuation event = the payment-default period, or — if no default is modelled — a hypothetical default at the trough-EBITDA period (so protection is always measured). Specific liens are paid from their own collateral pool; any deficiency joins general creditors. Illustrative appraised / collateral value (DEMO)

Base Case — FY2026E (hypothetical default at trough EBITDA; no default modelled)

Going concern
$1.8B
Liquidation
$1.3B
Recovery value = MAX (+ cash $310M)
$2.1B · going concern
Target tranche · LGD
100% recovery · 0% loss
Claim (by seniority)RankClaimRecoveryRecovery %LossLoss %
Recovery value$2.1B
Less: administrative / DIP costs($82.9M)
Senior Secured Notes 6.90%1$610.4M$610.4M100.0%$0.0M0.0%
Senior Unsecured Notes 7.50%3$407.5M$407.5M100.0%$0.0M0.0%
Total claims$1.0B$1.0B$0.0M
Equity (residual)$971.9MIn the money

Downside — FY2027E (hypothetical default at trough EBITDA; no default modelled)

Going concern
$941M
Liquidation
$1.1B
Recovery value = MAX (+ cash $284M)
$1.4B · liquidation
Target tranche · LGD
100% recovery · 0% loss
Claim (by seniority)RankClaimRecoveryRecovery %LossLoss %
Recovery value$1.4B
Less: administrative / DIP costs($56.2M)
Senior Secured Notes 6.90%1$610.4M$610.4M100.0%$0.0M0.0%
Senior Unsecured Notes 7.50%3$407.5M$407.5M100.0%$0.0M0.0%
Total claims$1.0B$1.0B$0.0M
Equity (residual)$332.1MIn the money

Severe Downside — FY2029E (modelled payment default)

Going concern
$382M
Liquidation
$858M
Recovery value = MAX (+ cash $0M)
$858M · liquidation
Target tranche · LGD
52% recovery · 48% loss
Claim (by seniority)RankClaimRecoveryRecovery %LossLoss %
Recovery value$858.0M
Less: administrative / DIP costs($34.3M)
Senior Secured Notes 6.90%1$610.4M$610.4M100.0%$0.0M0.0%
Senior Unsecured Notes 7.50%3$407.5M$213.3M52.4%$194.2M47.6%
Total claims$1.0B$823.7M$194.2M
Equity (residual)$0.0MWiped out

Recovery lab — change valuation assumptions and watch the waterfall re-allocate

Going-concern $148.5M vs liquidation $858.0M → recovery value = MAX = $858.0M (used: liquidation, $858.0M). Claims = current face value + 3 months accrued interest.

Claim (by seniority)RankClaimRecoveryRecovery %LossLoss %
Recovery value$858.0M
Less: administrative / DIP costs($34.3M)
Senior Secured Notes 6.90%1$610.4M$610.4M100.0%$0.0M0.0%
Senior Unsecured Notes 7.50%3$407.5M$213.3M52.4%$194.2M47.6%
Total claims$1.0B$823.7M$194.2M
Equity (residual)$0.0MWiped out