Lucky Strike Entertainment Corp (LUCK) presents a deeply negative liquidation recovery posture as of March 29, 2026. MFFAIS-computed cash liquidation value of approximately -$2.86B confirms equity has no residual claim under a stop-and-liquidate scenario. The liability stack totals $3.49B against total assets of $3.27B at book, and under liquidation haircuts the gap widens materially. The asset side is dominated by PP&E gross of $1.93B (net $1.25B) and goodwill of $887M; applying a 50-70% recovery to PP&E net yields roughly $627M-$877M, and goodwill is zero under liquidation lens. Finance and operating lease right-of-use assets ($302M and $553M respectively) have minimal standalone liquidation value and are offset by the corresponding lease liabilities that remain at face value in wind-up. The period's most significant balance-sheet development is the debt refinancing executed in Q1 FY2026: a new $1.20B term loan, $500M of 7.25% Senior Secured Notes, and a $425M revolving credit facility replaced the prior structure. Gross debt (DebtInstrumentCarryingAmount) stands at $1.78B with net long-term debt of $1.74B after deferred financing costs of $28M. The Carlyle property buyout ($306M for 58 locations) shifted $306M of cash outflow to the investing line, adding owned PP&E while eliminating the associated financing obligation leases, but the net liquidation effect is likely modestly negative given PP&E recovery rates below cost. Cash dropped from $95.9M at December 28, 2025 to $58.7M at March 29, 2026, a 39% decline in one quarter, driven by $115.9M in YTD operating cash flow offset by $429.7M investing outflows and $312.3M financing inflows. The Series A Preferred Stock ($134.4M carrying value at 5.5% PIK, $7.1M accrued this period) sits structurally senior to common equity and adds to the liquidation deficit. Stockholders' equity is -$362.8M. Operating lease liabilities total $605.5M ($35.4M current, $570.2M non-current) and finance lease liabilities total $429.6M ($1.6M current, $428.0M non-current); these face-value obligations persist through wind-up and are a primary driver of the liquidation gap. The filing discusses the Carlyle property acquisition cost and lease elimination in MD&A but does not separately tag the acquired property count or the specific lease liability extinguished in XBRL beyond the standard PP&E and lease line items.
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