Alphatec Holdings, Inc. (ATEC) presents deeply negative liquidation recovery to equity as of March 31, 2026. MFFAIS-reported cash liquidation value is approximately -$631M, consistent with this filing's balance sheet profile. Total assets of $799.5M are dominated by categories subject to severe haircuts under a liquidation lens: PP&E (net $138.0M, ~50-70% recovery), inventory ($186.0M, ~60% recovery), intangibles including goodwill ($90.0M finite-lived intangibles net + $74.5M goodwill, 0% recovery), and operating lease ROU assets ($30.6M, 0% recovery). Applying standard liquidation haircuts to the asset side yields estimated recoverable assets of roughly $150-175M against total liabilities that remain at face value. Total debt principal outstanding as of March 31, 2026 is $692.4M (face) against a carrying value net of unamortized discount/issuance costs of $573.4M long-term plus $65.5M current, totaling approximately $639M carrying value. Key liability components include: $200M Braidwell Term Loan (SOFR+575bp, maturity January 2028, subsequently refinanced per Note 14), $63.3M of 2026 Notes (maturity August 2026), $405.0M of 2030 Notes (maturity March 2030), $15.1M revolving credit, and $29.6M operating lease liability. Total current liabilities are $240.2M. Book stockholders' equity is negative at -$5.3M, and accumulated deficit stands at -$1,458.3M. The subsequent event (Note 14) is material: on May 1, 2026, post-quarter-end, ATEC entered a new JP Morgan credit facility consisting of a $175M term loan and $125M revolver (SOFR+275bp, April 2031 maturity), using proceeds to repay and terminate the Braidwell facility. This refinancing extends the maturity wall and reduces spread by 300bp but does not change the face amount of secured claims outstanding at liquidation. The filing does not separately tag the new JP Morgan facility's balance sheet impact in XBRL as it is a subsequent event. Cash declined $20.9M in Q1 2026 to $139.9M, driven by $19.9M investing outflows (instrument capex + $5.0M note receivable) against only $1.3M operating cash inflow. Operating cash generation remains nominally positive but insufficient to service debt; Q1 2026 net loss was $33.9M. The predominant asset base is surgical instruments (PP&E, primarily held-for-use, likely distressed-market recovery of 50-60%), inventory (medical implants, 60%), and intangibles (including $74.5M goodwill and $70.7M finite-lived intangibles, zero liquidation value). There is no meaningful improvement in the liquidation recovery posture compared to the prior annual filing period.
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