Amcor plc (AMCR) presents a deeply negative liquidation recovery posture as of March 31, 2026, consistent with MFFAIS-reported CLV of negative $6.1B and LLV/OLV of negative $2.6B. The balance sheet is dominated by intangible assets that receive zero recovery under the liquidation lens: goodwill of $12.0B and finite-lived intangibles net of $6.7B together account for approximately $18.7B of the $37.6B total asset base, roughly 50% of assets. These would yield nothing in liquidation. PP&E of $7.4B would recover 50-70% ($3.7B-$5.2B). Inventory of $3.4B ($2.0B finished/WIP + $1.3B raw materials) recovers at 60% (~$2.0B). AR of $3.5B recovers at 90-95% (~$3.2B-$3.3B). Cash of $1.6B recovers at par. Gross haircutted asset recovery approximates $10.5B-$12.1B on a rough basis. Against this, total liabilities stand at $25.9B at face value, with long-term debt alone at $15.8B ($15.2B non-current + $0.6B current), operating lease liabilities of $0.9B non-current, pension obligations of $0.3B, deferred tax liabilities of $2.0B, derivative liabilities of $0.5B, and accounts payable of $3.0B. The liability stack substantially exceeds haircutted asset recovery, yielding deeply negative equity recovery. The primary driver of balance sheet deterioration from the prior period (December 31, 2025) is the March 5, 2026 issuance of $1.5B in additional senior notes (4.25% due 2029 and 5.125% due 2036), pushing long-term debt from approximately $14.1B net debt to $14.3B net debt. Current portion of long-term debt jumped from $141M at June 30, 2025 to $561M at March 31, 2026, reflecting near-term maturity exposure. The Berry Global merger (closed April 30, 2025) is the root structural event: it added approximately $5.2B of assumed Berry debt plus $2.2B of new Amcor debt to extinguish Berry indebtedness, with purchase consideration of $10.4B funded primarily via ~846M ordinary shares. The result is a combined entity where goodwill and acquired intangibles constitute ~50% of assets. Additionally, the company has identified $500M of annual revenue businesses as held-for-sale ($503M assets, $177M liabilities on balance sheet), with five businesses under strategic review; two sold post-quarter-end and agreements executed for the remaining three. The supplier finance program obligation of $700M is a contingent liability not separately identified on the face of the balance sheet in all contexts but is XBRL-tagged and material at liquidation. The Berry Plan restructuring reserve stands at $112M with continued cash outflows expected. Pension net periodic benefit cost is $17M on a $305M non-current liability. Interest expense nearly doubled QoQ on an annualized basis, running at $507M for the nine months versus $252M prior year nine months.
▼ Community Notes