...Relatively High Valuation Multiples: There was a 6.3x median multiple of reorganization enterprise value/forward EBITDA for the Industrial and Manufacturing (I&M) sector cases analyzed in this edition of the bankruptcy case study series. The I&M sector median is modestly higher than the 6.0x cross-corporate sector exit multiple in Fitch Ratings' U.S. bankruptcy case study database. Of the I&M sample, 39% reorganized at a multiple above 7x. Outstanding First-Lien Recoveries: The average ultimate recovery rate on the 41 first-lien issues of the I&M defaulters was 82% of par value. Of the first-lien debt claims, 68% received distributions of 91% or more of par value, which is equivalent to Fitch's highest, RR1 category. Many of the first-lien issues with less robust recoveries had a first-lien security interest limited to non-working capital assets and had a second-lien interest on inventory and receivables. Material Debt Reduction Achieved: The I&M cases analyzed achieved average balance...
