Ampco-Pittsburgh (AP) presents a deeply negative liquidation posture as of March 31, 2026. MFFAIS reports a cash liquidation value of approximately -$233M, a liquid liquidation value of approximately -$140M, and an operating liquidation value of approximately -$34M, confirming equity recovery is materially negative under all haircut scenarios. The primary drivers are a $192.97M asbestos litigation reserve (LossContingencyAccrualAtCarryingValue) that sits at face value on the liability side, $122.97M in combined current and non-current asbestos insurance receivables that receive a haircut under the liquidation lens, $134.1M in total debt (LongTermDebtAndCapitalLeaseObligationsIncludingCurrentMaturities), and a retained earnings deficit of -$139.5M. Tangible assets are modest: net PP&E of $126.3M on gross of $439.7M (heavily depreciated, $313.4M accumulated D&A), inventory of $105.1M, and AR of $93.6M. After applying standard haircuts, the asset side cannot come close to covering $449.6M in total liabilities at face value. A notable event in Q1 2026 was a $875K non-cash Deconsolidation Charge related to the deconsolidation of UES-UK (a UK subsidiary that entered administration), which reduced FCEP segment income. This triggered a loss attributable to AP of -$867K for the quarter. The filing also discloses that the U.S. defined benefit pension plan reached fully funded status in early 2026, resulting in a shift to a more conservative investment portfolio and reduced pension income ($435K vs. $665K prior year). The pension obligation tagged (PensionAndOtherPostretirementDefinedBenefitPlansLiabilitiesNoncurrent) of $20.4M reflects net funded status of remaining non-U.S. plans and other OPEB. Cash ended the quarter at $9.2M, down from $10.7M at December 31, 2025. Revolving credit availability was approximately $30.8M net of reserves; the facility matures June 2030. The asbestos liability structure (combined reserve $193M, partially offset by insurance receivables of $122.6M) is the single largest liquidation-value swing factor and dominates recovery math. The filing discusses the Deconsolidation Charge in MD&A but the specific charge amount is embedded within segment operating income disclosure rather than separately XBRL-tagged as a distinct line item.
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