CMCO's liquidation posture as of December 31, 2025 is deeply negative, consistent with a serial-acquisition industrial manufacturer carrying a heavy intangible asset load against face-value obligations. The MFFAIS CLV of -$293M and LLV of -$118M confirm this. Total assets of $1.76B are dominated by goodwill ($732M), other intangibles net ($346M), and operating lease ROU assets ($55M) — all of which receive zero or near-zero recovery haircuts under the liquidation lens. Against these, tangible recoverable assets are limited: cash of $35M (100% recovery), net AR of $174M (90-95% recovery, though $89M is pledged to the AR securitization facility), inventory net of $222M (60% recovery), and PP&E net of $102M (50-70% recovery). Applying standard haircuts yields roughly $35M + $158M + $133M + $60M = ~$386M in gross recoverable value from liquid and tangible assets, before any secured debt claims. Against this, the liability stack at face value includes current debt and finance lease obligations of $51M (with company intent to pay $50M over 12 months including AR securitization), long-term debt and lease obligations of $399M, operating lease liabilities of $65M, accrued liabilities of $121M, and other noncurrent liabilities of $177M. Total liabilities of $840M substantially exceed the ~$386M in haircut-recoverable assets, producing a deeply negative equity recovery. Key liability-side risks include: (1) Term Loan B principal of $426M maturing May 2028, which was refinanced February 3, 2026 in connection with the Kito Crosby acquisition — this refinancing significantly changes the post-period debt structure but is not reflected on the December 31, 2025 balance sheet; (2) operating lease obligations of $65M that survive liquidation at face value; (3) $17.8M in accrued general and product liability reserves (gross), net of $5.9M in estimated insurance recoveries; (4) derivative liabilities totaling approximately $9.1M net (interest rate swaps and cross-currency swaps). The Kito Crosby acquisition closed February 3, 2026 — subsequent to this balance sheet date — and entailed significant new debt issuance (new credit facility per Exhibit 10.3 and unsecured notes per Exhibit 4.1) that will materially worsen the post-period liquidation posture. The Precision Conveyance reporting unit goodwill of $402M has disclosed headroom of only 2.6% above carrying value as of the February 2025 annual test, representing a significant goodwill impairment risk that would not affect liquidation value directly (goodwill is zeroed out) but signals overpayment risk in the underlying tangible asset base. Filing discusses the pending Kito Crosby divestiture of a business unit (Divestiture Agreement dated January 13, 2026) in MD&A but the specific business unit and proceeds are not separately tagged in XBRL.
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