NEOGEN CORP (NEOG) as of February 28, 2026 presents a deeply negative liquidation posture, consistent with its acquisition-heavy balance sheet. MFFAIS CLV is reported at -$784M, with OLV at -$485M. This analysis works from the TAG_CONTEXT balance sheet values. Total assets of $3.36B are dominated by intangibles: goodwill of $1.05B (zero recovery under liquidation lens) and finite-lived intangibles net of $1.34B (zero recovery). PP&E net is $331.9M, recovering at roughly 50-70% haircut, implying $166M-$232M. Cash of $159.9M recovers at par. Accounts receivable net of $137.1M (after $4.1M allowance) recovers at 90-95%, yielding ~$123M-$130M. Inventory net of $161.7M recovers at 60%, yielding ~$97M. Prepaid and other current assets of $63.1M are largely non-recoverable. Assets held for disposal of $68.2M current carry some residual value but are already in the process of disposition; recovery uncertain. Total haircutted asset recovery approximates $580M-$640M before any adjustments. On the liability side, total liabilities stand at $1.26B at face value. The most significant liability is long-term debt: $793.3M noncurrent plus current maturities tagged at $800M — this double-count likely reflects the gross balance shown in TAG_CONTEXT; MD&A states no required principal payments until Q2 FY2028. The filing indicates a Term Loan refinanced April 2025. Net interest-bearing debt is a primary recovery drain. Deferred tax liabilities of $269.2M remain at face value in liquidation. Other noncurrent liabilities of $43.5M and current liabilities of $150.6M (including AP $75.2M, accrued employee $23.5M, other current $28.2M) also stand at face value. After applying haircuts to assets and holding liabilities at face, recovery to equity is substantially negative, consistent with the MFFAIS estimates. The dominant driver of the negative posture is the $2.39B in goodwill plus net intangibles (0% recovery) acquired principally through the 3M Food Safety Division transaction. The $461.4M goodwill impairment taken in the prior year nine-month period confirms the overpayment thesis. Goodwill at $1.05B remains on the balance sheet after that charge. No additional impairment was recorded in the current period, but no goodwill impairment XBRL tag with a non-zero value appears in TAG_CONTEXT for this period. The Cleaners and Disinfectants divestiture closed in the current nine-month period, generating $121.7M in cash proceeds and a $76.4M gain; proceeds were used to reduce debt by $100M. Cash improved from $145.3M (prior Q2 filing) to $159.9M. Debt declined but remains approximately $793M noncurrent. The filing also discloses material weaknesses in internal controls over financial reporting, carried forward from the FY2025 10-K; disclosure controls were deemed not effective as of February 28, 2026. MD&A discloses gross margin compression (46.6-46.9% vs. 49.1-49.9% prior year) driven in part by inventory write-offs and duplicative Petrifilm manufacturing costs as new Lansing facility ramps — this increases inventory impairment risk in a liquidation scenario beyond the standard 40% haircut. Inventory valuation reserves of $16.5M already applied. Filing discusses ongoing restructuring ($6.9M charges, $6.3M paid nine months) but does not separately tag restructuring reserve activity beyond $1.5M balance. Capital expenditures of $47.3M in the nine-month period, concentrated in the Lansing manufacturing facility build-out (~$35M of FY2026 capex estimate), adds PP&E with uncertain liquidation recovery given it is purpose-built food safety testing equipment and real estate.
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