Manitowoc Co Inc Liquidation Value

Manitowoc (MTW) is a crane manufacturer with a balance sheet that produces a deeply negative recovery to equity under liquidation assumptions. As of March 31, 2026, total assets are $1.84B against total liabilities of $1.16B, yielding GAAP book equity of $685.9M. Under liquidation haircuts, recoverable asset value contracts sharply: cash of $78.4M recovers at par; AR of $264.8M recovers at roughly $245M (90-95%); inventory of $744.1M recovers at roughly $446M (60%); PP&E net $334.9M recovers at roughly $167-234M (50-70%); intangibles of $123.1M and goodwill of $80.3M recover at $0. Applying these haircuts, gross liquidation proceeds approximate $1.0-1.06B against total liabilities held at face value of $1.16B, producing negative equity recovery — consistent with MFFAIS CLV of -$513M and LLV of -$248M. The $447.4M total debt (primarily the 2031 Notes and ABL Revolving Credit Facility) is the largest liability and sits senior to equity in any wind-down. The pension obligation of $44.2M does not extinguish on wind-up. Inventory is the single largest asset at $744.1M and is the primary haircut driver; at 60% recovery that line alone absorbs $298M in value destruction. The operating liquidation value per MFFAIS is positive at $495.7M, reflecting the going-concern franchise value that evaporates in a wind-down. Since the prior filing (10-K for FY 2025), total debt declined modestly from $460.8M to $447.4M, inventory increased materially (IncreaseDecreaseInInventories shows $67.6M build in Q1 2026), and a significant post-quarter-end tariff contingency has emerged. The company disclosed on April 30, 2026 a voluntary prior disclosure to CBP related to potential calculation errors on Section 232 tariffs ($18M paid) and a separate IEEPA tariff recovery claim ($25M paid). Management has recorded no asset or liability for either matter as of March 31, 2026; the downside exposure from the CBP disclosure is unquantified and could constitute an incremental unsecured claim against the estate in a liquidation scenario. Additionally, deferred financing costs of $4.2M on the liability side are a non-cash offset with no liquidation value. The guarantee exposure of $41.2M (financial guarantees) would crystallize as a contingent liability on wind-up and is not currently reflected in the liability stack used for this analysis.