KORE Group Holdings, Inc. Liquidation Value

KORE Group Holdings (KORE) presents deeply negative liquidation recovery across all three MFFAIS metrics as of March 31, 2026: CLV -$342M, LLV -$295M, OLV -$292M. The asset side is dominated by intangibles and goodwill — categories that receive zero recovery haircut under the liquidation lens — while the liability stack is substantial and face-value obligations continue to compound. The filing's own XBRL TAG_CONTEXT is empty, meaning no balance-sheet line items were separately tagged in the submission provided; all quantitative figures referenced below are drawn from filing narrative and MD&A disclosures.

Debt stack at March 31, 2026: Term Loan (WhiteHorse) $180.8M face, Backstop Notes $120.0M face, total $300.8M gross. Both instruments mature in 2028 and carry PIK-style accrual mechanics. The Term Loan is secured by substantially all subsidiary assets. The Backstop Notes are senior unsecured with cross-default provisions tied to the Term Loan.

Mandatorily redeemable preferred stock (Series A-1, Searchlight) carries a $1,000/share liquidation preference on 152,857 shares, or $152.9M face, mandatorily redeemable in cash November 15, 2033. Dividends accrue at 13% compounded quarterly; accrued and unpaid dividends as of March 31, 2026 were $54.3M, up from $47.9M at December 31, 2025 — a $6.4M quarterly accrual. As of May 11, 2026 the arrearage had grown to $57.4M. Under liquidation lens, the full face redemption amount plus accrued dividends stands at approximately $207M for this single instrument alone. This obligation does not extinguish on windup and ranks ahead of common equity.

Vendor purchase commitments of $67.6M (primarily multi-year carrier and cloud contracts) are off-balance-sheet as of March 31, 2026 and would not extinguish on a wind-up. These commitments are disclosed in MD&A but are not XBRL-tagged as a balance-sheet line and therefore not reflected in the MFFAIS OLV/LLV figures. Adding these to the liability stack further worsens the recovery position.

Off-balance-sheet indirect tax contingency of $3.5M–$4.9M (net $2.9M–$4.1M after recoveries) remains accrued at the low end; this is a going-concern accrual. On liquidation, the full gross exposure ($4.9M) would be the relevant figure.

Cash on hand: $28.9M at March 31, 2026 versus $26.7M at December 31, 2025, a modest improvement. Revolving Credit Facility capacity: $25.0M undrawn. Operating cash flow for Q1 2026 was $4.7M positive, improved from $2.8M in Q1 2025.

A pending merger (KONA Parent, L.P.; $9.25/share cash consideration) was announced February 26, 2026. The transaction is not subject to a financing condition and expected to close Q2-Q3 2026, conditional on stockholder approval (including a majority-of-minority vote excluding Searchlight and Abry) and regulatory clearance (HSR, CFIUS). If the merger closes at the stated consideration, common equity holders receive $9.25/share. The Series A-1 Preferred Stock holder (Searchlight) has executed a Voting, Support and Rollover Agreement, meaning the preferred obligation would be addressed within the merger structure rather than through a standalone liquidation. Under a pure stop-operations liquidation scenario absent the merger, equity recovery would be substantially negative.

Disclosure controls remain ineffective as of March 31, 2026 due to continuing material weaknesses in IT general controls and the order-to-cash process, carried forward from the December 31, 2025 10-K. This is relevant to data quality underlying balance-sheet line items, particularly revenue-related receivables. Filing discusses goodwill impairment risk in MD&A (management notes potential quarterly GAAP earnings volatility from goodwill impairment assessments) but does not separately XBRL-tag goodwill or intangibles in the TAG_CONTEXT provided.