Revolving credit facilities remained a critical tool for companies, with overall robust recoveries for both asset-backed loans (ABL) and cash flow revolvers, according to a new Fitch Ratings report. Utilization rates for both ABL and cash flow facilities with usage disclosed as of the bankruptcy petition date were 79 percent when separately averaged for the two cohorts. Revolver facilities averaged an 88 percent ultimate recovery, with asset backed loans recovering an average 96 percent, versus 82 percent for cash flow revolvers. Recovery distributions for revolver claims were paid exclusively in cash, including debtor-in-possession facility roll-ups, for 65% of the claims. The remainder were largely satisfied by various combinations of cash, new debt and new common equity.
