Further clarification on 1 (a) and (b):
1- So to clarify, the Green box can include secured and unsecured debt? What classifies a piece of debt in the Blue box (Senior Secured Debt) and not the Green Box (Senior Debt) – can you give an example please? Are securitizations excluded from this slide's capital structure?
2- Two examples that make the differentiation confusing to me:
1. Asset-backed revolvers – fall under which category? If asset-backed revolvers are secured by specific assets, would it be in the Blue Box? But since it’s a bank revolver, would that put it in the Green box?
2. 1st / 2nd lien loans – since it’s not secured by any specific asset but is a general 1st or 2nd lien against all company assets, this would be in the Green Box?
3- Question on slide 46 – trying to understanding bullet point 1, 4, and 6 together since it sounds confusing to me. As I understand it: only one class needs to accept a plan for it to be passed on to the court. Court can then confirm the plan. If confirmed by the court, under that specific plan, all impaired classes that are entitled to vote (meaning, they would receive at least some recovery value under that plan) MUST accept the plan for it to be implemented, while, other impaired classes (that would receive no recovery under that plan) don’t need to vote at all (ie their vote doesn’t matter for the plan to be implemented). Is that a correct understanding?