Jerash Holdings (JRSH) is a Jordan-based garment manufacturer (primarily outerwear) reporting as of December 31, 2025 (Q3 FY2026, fiscal year ending March 31). The liquidation analysis uses balance sheet values from the TAG_CONTEXT. Total assets are $84.2M against total liabilities of $20.6M, leaving book equity of $63.7M. Under liquidation haircuts, recovery to equity is materially lower. Applying standard haircuts: cash $11.5M at 100% = $11.5M; restricted cash $1.7M at 100% = $1.7M; AR $7.8M at 92% = $7.2M; inventory $26.0M at 60% = $15.6M; advances to suppliers $8.1M at 50% (prepayments, no collateral) = $4.1M; PP&E net $24.0M at 60% = $14.4M (76% of long-lived assets in Jordan, carrying geopolitical execution risk on sale); goodwill $0.5M at 0%; operating lease ROU $0.6M at 0%; other assets (prepaid, deposits) ~$4.6M at 30% = $1.4M. Estimated gross liquidation asset recovery is approximately $56M. Liabilities at face value total $20.6M, inclusive of $9.3M in credit facility draws (DBSHK $4.5M, Bank al Etihad $4.8M), $3.6M AP, $4.0M accrued liabilities, $1.1M income taxes payable, $1.9M other notes payable, and $0.4M in lease liabilities. Net liquidation recovery to equity is approximately $35M, or roughly 55% of book equity, consistent with the MFFAIS operating liquidation value of $24.8M. The material drag is inventory haircut ($10.4M reduction), the Jordan-concentrated PP&E haircut ($9.6M reduction), and supplier advances that are largely non-recoverable in wind-down. Since the prior filing (Q2 FY2026, September 30, 2025), current assets grew from approximately $54.4M to $56.8M driven by AR expansion ($4.8M increase noted in cash flow), offset by cash reduction ($1.9M net decrease in cash and restricted cash). Credit line utilization increased: a new Bank al Etihad facility of $6M was added in July 2025 with $4.8M drawn at quarter-end, increasing total line-of-credit obligations to $9.3M from approximately $4.5M at Q2. Post-quarter, the company signed a loan agreement for JOD 2.0M (~$2.82M) with the Housing Bank to acquire a manufacturing property in Jordan for JOD 2.4M (~$3.38M). This transaction, not yet on the December 31 balance sheet, will add approximately $2.8M in long-term debt and $3.4M in PP&E when recorded in Q4, incrementally expanding the liability stack. The PPE customer litigation ($653K court order against JRSH) is not accrued; management assesses loss as remote, but it represents a contingent claim at face value in liquidation. Filing discusses the $7.8M-$18M per year five-year capex plan in MD&A but does not separately tag these forward commitments in XBRL.
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