FMC Corp's liquidation posture as of March 31, 2026 is severely negative, consistent with MFFAIS CLV of approximately -$6.3B. Total reported assets of $9.4B collapse materially under liquidation haircuts. Cash of $391M recovers at par. Trade receivables (net current $2.2B) recover at 90-95%, yielding roughly $2.0-2.1B, but collection quality is impaired by heavy Latin American exposure with multi-month collection cycles and a $42.5M allowance. Inventory of $1.2B (60% haircut) yields approximately $750M. PP&E gross $1.6B less accumulated depreciation of $976M gives net $628M, recovering at 50-70% or roughly $310-440M. Intangibles are the dominant asset class: finite-lived intangibles net $717M and indefinite-lived intangibles $1.6B total $2.3B, zeroed under liquidation. Goodwill is not separately tagged in XBRL but is embedded in total assets; the filing does not separately disclose a goodwill line in TAG_CONTEXT, though it is referenced in the 10-K. DTA net $1.1B also zeros. The India held-for-sale net assets ($445M on balance sheet, Level 3 fair value $425M) are the one near-term monetization event; proceeds are committed to debt paydown. Against these haircut assets, liabilities remain at face: total debt $4.5B (short-term $1.8B current including $1.1B revolving credit, long-term $2.8B); current liabilities ex-debt of $2.1B; noncurrent environmental $579M (a hard cash obligation with $273M additional reasonably possible exposure not accrued); pension/OPEB noncurrent $17.5M; other noncurrent $340M; operating lease liability $123M; discontinued operations current liabilities $47.5M. The April 2026 credit agreement amendment (Amendment No. 6) suspends leverage ratio testing through Q3 2026 and grants covenant relief to 2029 — signaling lenders recognize near-term covenant breach risk absent the waiver. The revolving credit facility was drawn $1.1B of a $2.0B facility with only $667M remaining capacity. Project Foundation restructuring ($560-635M total expected pre-tax, $420-440M non-cash asset write-offs) will further erode PP&E over 2026-2027. The $124M Switzerland deferred tax valuation allowance increase in Q1 2026 signals further DTA realization risk. Operating cash flow was -$601M in Q1 2026, driven by working capital seasonality but also by $66M restructuring cash payments. Equity per books is $1.8B but is functionally consumed multiple times over by the intangible and DTA write-downs required under a liquidation scenario. Recovery to equity under liquidation is deeply negative across all three MFFAIS scenarios (CLV -$6.3B, LLV -$4.0B, OLV -$2.8B). Since the prior filing (2025 10-K, period end December 31, 2025), total debt increased $459M (from $4.1B to $4.5B), cash decreased $194M, the India HFS carrying value declined $25M from $450M to $425M, restructuring reserves increased $30M, and the DTA position was impaired by the $124M Swiss valuation allowance. The Board initiated a strategic alternatives review including potential sale of the company, which is the only realistic path to equity recovery absent a going-concern scenario.
▼ Community Notes