没有特别理解，请问可以帮忙解释一下吗 谢谢

问题如下：

Half of Mojofon’s senior unsecured bonds are issued by its major operating subsidiary, which contributes over 90% of the group’s cash flow and assets, and the remainder of the group’s senior unsecured bonds are issued by the holding company that relies on dividend upstreamed by its subsidiaries. There is no cross-guarantee between the holding company and the subsidiary. In an event of default, it is most likely that:

选项：

A.

the unsecured bonds issued by the holding company will have a higher recovery rate.

B.

the unsecured bonds issued by the operating subsidiary will have a higher recovery rate.

C.

the recovery rate will be the same for all senior unsecured bonds since they rank pari passu with each other.

解释：

The correct answer is B. Senior unsecured bonds issued by the holding company are said to be structurally subordinated to those issued by the major operating subsidiary. Debt at the operating subsidiary will be serviced by the cash flow and assets of the subsidiary first before any funds can be upstreamed to the holding company to service debt at that level. Since the operating subsidiary accounts for over 90% of the group’s cash flow and assets but only half of the group’s senior unsecured debt, the holding company debt can only be serviced after the operating subsidiary debt is paid in full. The unsecured bonds issued by the subsidiary will most likely have higher recovery.