Bausch & Lomb (BLCO) presents deeply negative liquidation recovery at March 31, 2026, consistent with prior periods. MFFAIS latest figures show cash liquidation value of negative $6.6B, liquid liquidation value of negative $5.5B, and operating liquidation value of negative $4.5B. Under the liquidation lens, the asymmetry is stark: total reported assets of $13.78B are dominated by goodwill ($4.74B, zero recovery), finite-lived intangibles net $1.43B (zero recovery), indefinite intangibles comprising the balance of the $3.23B intangibles net figure (zero recovery), and deferred tax assets of $945M (zero recovery in liquidation). Tangible asset recovery is limited to cash at $268M (100%), AR net $1.09B (90-95% haircut applies to gross $1.11B), inventory at $977M (60% recovery = ~$586M), and PP&E net $1.79B (50-70% = ~$897M-$1.25B). Against this, face-value liabilities total $7.33B including $5.04B long-term debt (gross face $5.09B), $1.82B current liabilities ($1.37B accrued liabilities alone), $458M other noncurrent liabilities, $98M contingent consideration, and $19M deferred tax liabilities. The debt stack is the primary driver of negative equity recovery: $2.80B January 2031 Refinancing Term Facility at 7.42% plus $1.40B October 2028 Secured Notes at 8.375% plus approximately $675M EUR-denominated January 2031 Secured Notes at floating ~5.89%, totaling $5.09B face. The January 2026 Credit Facility Amendment consolidated two prior term loans into the single $2.80B January 2031 facility; this reduced near-term maturity pressure but did not reduce face quantum. Debt maturity schedule shows $1.44B due in Year 2 (2028, the Secured Notes), $3.45B in Year 5 (2031), creating a back-loaded but substantial wall. Operating performance improved quarter-over-quarter — Q1 2026 net loss attributable to BLCO was $71M vs. $212M in Q1 2025, and operating cash flow turned positive at $32M vs. negative $25M — but this is income-statement improvement and does not alter the liquidation calculus. Cash declined $118M in Q1 2026 to $279M (including $11M restricted), driven by $130M investing outflows including a $35M MIEBO milestone payment. The filing does not separately XBRL-tag the senior secured notes face amounts or the EUR-denominated notes as distinct balance sheet items; those figures are disclosed in the MD&A debt narrative only. Filing discusses pending separation from Bausch Health Companies (BHC) and tariff exposure in MD&A but does not separately tag either in XBRL.
▼ Community Notes