...Relatively High Valuation Multiples: The median multiples of reorganization enterprise value/forward EBITDA forecast for 11 healthcare and pharmaceutical (HC) and 10 food, beverage and consumer company (FBC) bankruptcy valuations were 6.8x and 6.1x, respectively. Median multiples for the sector cases were modestly higher than the median 5.8x cross-sector exit multiple in Fitch's bankruptcy case database. Eleven of the 21 HC and FBC cases for which Fitch was able to estimate a multiple were within the 5.0x¡7.0x range. Outstanding First-Lien Recoveries: The average ultimate recovery rate on the 38 first-lien issues of the HC and FBC defaulters was 93% of par value, and 82% of these claims received distributions of 91% or more of the claim amount, which is equivalent to Fitch's highest, RR1, category. The relatively high reorganization multiples and stable cash flow profiles promoted mainly outstanding recoveries at the first-lien level. Average Unsecured Recoveries: The 53 unsecured debt...
