Haemonetics (HAE) as of December 27, 2025 presents a deeply negative liquidation recovery posture, consistent with the MFFAIS-reported CLV of negative $1.10B and LLV of negative $901M. Total assets of $2.49B are dominated by intangibles, goodwill, and PP&E — categories that receive zero to partial recovery haircuts under a liquidation framework. Applying standard haircuts: cash of $363M recovers at par; AR of $196M recovers approximately $176-186M at 90-95%; inventory of $321M recovers approximately $193M at 60%; PP&E gross of $837M net of accumulated depreciation of $540M yields a net book value of $297M, recovering perhaps $148-208M at 50-70%; goodwill of $607M and intangibles net of $420M receive zero recovery. Other long-term assets of $216M include $97.2M in strategic investments carried at cost — these are illiquid minority positions in private entities and are effectively zero in a forced liquidation. Against these haircut assets, liabilities must be settled at face value: current liabilities total $540M including $305M of current long-term debt (primarily the $300M 2026 convertible notes maturing March 1, 2026), and long-term debt of $920M (primarily the $700M 2029 convertibles at $688M net plus the $241M term loan). Total debt face value is approximately $1.24B. The net debt position as reported is negative $861M (cash minus total debt). The asymmetry is stark: after haircuts, recoverable asset value is roughly $830-900M against liabilities at face value exceeding $1.5B (current $540M plus long-term non-debt $64M plus long-term debt $920M), producing a deeply negative recovery to equity. Material changes quarter-over-quarter (vs. Q2 FY2026 ending September 27, 2025): cash improved from $296M to $363M on strong operating cash flow ($222M YTD vs. $65M prior-year period); net debt improved modestly from negative $928M to negative $861M; strategic investments increased from approximately $88.6M to $97.2M as additional pre-acquisition loans/equity to Vivasure were deployed. Subsequent to period-end, HAE closed the Vivasure acquisition for $60.7M cash, further reducing the cash balance. The $9.3M YTD intangible impairment charge (HAS viscoelastic IP) confirms ongoing intangible value erosion. Filing discusses goodwill of $607M and intangibles net $420M extensively in MD&A and Note 11 but these are confirmed zero-recovery items under the liquidation lens.
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