The Andersons, Inc. (ANDE) Q1 2026 10-Q presents a balance sheet with total assets of $3.92B and total liabilities of $2.61B, yielding book equity of $1.31B. Under a liquidation lens, the recovery posture is significantly negative, consistent with MFFAIS-reported CLV/LLV of approximately -$2.37B and OLV of -$969M. The asset-side haircuts are severe given the composition: inventories of $1.40B recover at 60% ($839M haircutted from $1.40B); receivables of $772M recover at 90-95% (modest haircut); PP&E net of $961M recovers at 50-70% ($288-481M haircut); other noncurrent assets of $402M contain significant intangibles and other soft assets approaching zero recovery; and cash of $72M recovers at par. The liability stack at face value includes $717M short-term debt, $23M current LTD, $569M noncurrent LTD (fair value per filing of $587.5M, carried at amortized cost), $633M trade payables, $223M customer prepayments/deferred revenue, $207M accrued liabilities, and $171M other noncurrent liabilities. The total stated face-value liability stack of $2.61B absorbs most recoverable asset value. The single most significant change versus the prior filing (2025 10-K, period end December 31, 2025) is the $493.8M year-over-year increase in short-term borrowings to $716.5M, driven by acquisition of remaining TAMH interest in 2025 depleting cash and forcing revolving credit drawdowns in 1Q26. This materially worsens the current-portion liability stack in a liquidation scenario. PP&E increased due to ongoing capex ($225M planned for 2026, ~$52M spent in Q1). Long-term debt fair value declined from $618.7M at December 31, 2025 to $587.5M at March 31, 2026, indicating a modest improvement in market-implied credit standing or rate movement but the carrying value noncurrent portion remained at $569M. Embedded derivative liabilities increased from $27.6M (March 2025) to $126M (March 2026), driven by provisionally priced payable fair value movements tied to agricultural commodity price levels. A $5.0M litigation accrual for a class-action commodities/antitrust settlement is disclosed in Note 9; the filing also notes an open non-regulatory claim related to a former subsidiary receivership with potential for loss exceeding accruals—neither is separately XBRL-tagged. The revolving credit facility was amended in March 2026 reducing capacity by $250M to $1,802.5M total, with $1,083M available as of period end; covenant compliance is affirmed. Section 45Z clean fuel production credits of $26.2M are recognized in Q1 2026 Other income and $62M in Other current assets, providing near-term cash-equivalent asset value not present in the prior-year balance sheet, though treatment in a liquidation scenario is uncertain absent confirmed transferability.
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