Vail Resorts (MTN) presents a deeply negative liquidation posture as of January 31, 2026, consistent with the asset-heavy, intangible-laden structure of a multi-resort operator. MFFAIS reports a cash liquidation value of negative $1.15B and an operating liquidation value of negative $849M, confirming equity recovery in a wind-down scenario is zero. The dominant drivers of the shortfall are: (1) $1.70B in goodwill and $300M in other intangibles that receive zero recovery under the liquidation lens; (2) $2.41B in net PP&E (gross $5.58B, accumulated depreciation $3.16B) that recovers at 50-70%, implying a $700M-$1.2B shortfall against book; and (3) $2.93B in total long-term debt carried at face value against these haircut assets. The most significant development since the prior filing (October 31, 2025) is the drawdown of the remaining $275M delayed-draw term loan on December 26, 2025 to fund the cash repayment of the $525M 0.0% Convertible Notes at maturity. This refinancing reduced the current-portion debt from $589.7M at October 31 to $73.0M at January 31, improving the near-term maturity wall, but total debt declined only modestly from $3.17B to $2.93B as the new $500M 5.265% senior notes issued July 2025 remain outstanding. Net Debt narrowed from $2.59B (October 31) to $2.55B (January 31), as cash fell from $581.5M to $384.7M reflecting dividends of $158.9M, share repurchases of $45M, and reduced operating cash from a weather-impacted ski season (Mountain Reported EBITDA down 10.8% for the six-month period). Deferred revenue of $717.5M current and $96.5M non-current is a pass-through liability at face value under liquidation and represents significant wind-down cash obligations. ASC 842 lease obligations total $248.5M ($36.6M current, $211.9M non-current) and are carried at face value. Contingent consideration liability of $79.5M (Canyons Resort agreement, escalating annually at the greater of CPI minus 1% or 2%) is a perpetual-style obligation with no extinguishment mechanism on liquidation. Goodwill of $1.70B ($22.9M FX translation uplift in the period) carries zero liquidation value. The filing does not separately tag PP&E by asset class in a way that allows granular recovery bracketing beyond gross/net, but machinery and equipment gross of $2.26B is the largest component, consistent with ski lifts and snowmaking systems that have limited alternative-use liquidation markets.
▼ Community Notes