Allegiant Travel CO (ALGT) as of March 31, 2026 presents a deeply negative liquidation posture, consistent with MFFAIS CLV of approximately negative $2.6 billion. The company is a capital-intensive airline with the bulk of its asset base in PP&E ($3.07 billion net, $4.30 billion gross). Under a 50-70% PP&E recovery haircut, that asset class yields approximately $1.5-2.1 billion in liquidation proceeds. Cash and equivalents of $283 million recover at par; short-term investments of $619 million (Level 2 AFS securities, highly liquid) recover near par; long-term investments of $31 million similarly near par. Total adjusted liquid and near-liquid assets approximate $933 million. Applying haircuts, blended asset recovery is estimated at $2.4-3.1 billion against total liabilities of $3.32 billion carried at face value. Equity book value of $1.10 billion is not indicative of liquidation recovery — the asymmetry between haircut assets and face-value liabilities absorbs that equity buffer. Key liability drivers are: total debt and finance lease obligations of $1.81 billion (gross, pre-issuance costs); current liabilities of $1.18 billion including air traffic liability (deferred revenue) of $489 million which does not extinguish in liquidation; pilot retention bonus accrual of $256 million embedded in accrued liabilities, which is a contractual obligation triggered by CBA ratification; deferred tax liabilities of $323 million; and operating lease liabilities of $62 million. The $528 million 2027 debt maturity wall is a material near-term concentration under the maturity schedule. Post-period, the company drew an additional $291 million in new aircraft credit facilities (April 2026: $115 million fully drawn plus $44 million of a $176 million facility), which would increase the liability stack not reflected in the March 31 balance sheet. The pending Sun Country merger (expected close May 13, 2026) introduces additional contingent liability and share dilution not yet on-balance-sheet. The PP&E base is subject to an accelerating Airbus retirement program (8 additional airframes retiring May 2026-January 2027) with accelerated depreciation recorded as special charges, reducing the gross PP&E base over time. Intangibles and goodwill: filing does not separately disclose a material goodwill or intangible balance in XBRL — these are treated as zero in liquidation. The $9.9 million TSA contingent assessment is disclosed in MD&A but not separately XBRL-tagged as a liability; no reserve recorded.
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