Adient plc (ADNT) carries a deeply negative liquidation value, consistent with prior periods. MFFAIS reports a cash liquidation value of negative $7.99B and an operating liquidation value of negative $7.25B as of March 31, 2026. The asset base of $9.03B is dominated by low-recovery items: goodwill of $1.80B (zero recovery), net intangibles of $305M (zero recovery), PP&E net of $1.38B (50-70% recovery haircut), and equity method investments of $301M (uncertain realization in liquidation). The highest-quality liquid assets are cash of $831M (100% recovery) and net accounts receivable of $2.03B (90-95% recovery). Inventory of $735M recovers at roughly 60%. Against these haircut assets, total debt sits at approximately $2.39B face value including $622M Term Loan B, $500M 7.00% secured notes due 2028, $500M 8.25% unsecured notes due 2031, and $795M 7.50% unsecured notes due 2033. Current liabilities of $3.87B include $2.76B accounts payable and $351M accrued compensation. Noncurrent liabilities of $3.07B include the long-term debt stack plus $108M pension liability, $587M other noncurrent liabilities, and $172M long-term operating lease obligations. Total lease commitments of $300M do not extinguish on windup. The restructuring reserve of $129M ($86M current, $43M noncurrent) represents cash obligations under ongoing EMEA workforce reduction plans. Unrecognized tax benefits of $335M represent a contingent liability not fully captured in the GAAP balance sheet. Supply chain financing liabilities of $107M and supplier finance program obligations are face-value claims. Compared to the prior period (December 31, 2025), the liquidation posture is marginally worse: total assets increased modestly ($9.03B vs. prior period's $3.92B current assets alone, implying similar total), but current liabilities rose from $3.59B to $3.87B, driven by higher accounts payable ($2.76B vs. approximately $2.5B), compressing the thin working capital cushion from $324M to $377M. The goodwill balance of $1.80B remains a dead-weight zero under liquidation; the prior-year $333M EMEA goodwill impairment removed some of this exposure, but the remaining balance remains fully at risk. The filing does not separately disclose the aggregate pension obligation (PBO) by plan in the body reviewed; the $108M noncurrent pension liability on the balance sheet likely understates total termination cost under a wind-up scenario. Filing discusses $90M of commercial and derivative transaction cash flows received in Q2 FY2026 expected to be paid out in Q3, creating a transient uplift to reported cash that will reverse.
▼ Community Notes