NPK International Inc. Liquidation Value

NPK International Inc. (NPKI) is a composite matting rental and sales company operating in the U.S. and U.K. As of March 31, 2026, the balance sheet shows total assets of $437.9M against total liabilities of $78.1M, yielding GAAP book equity of $359.8M. Under a liquidation lens, the recovery posture is meaningfully positive but substantially below book, driven by the asset composition and pending forward capex commitments.

Asset-side haircuts are material. The single largest balance sheet item is net PP&E (including finance lease ROU assets) at $239.8M — primarily the composite mat rental fleet and manufacturing assets. At a 50-70% recovery rate, this line contributes $120-$168M of recoverable value. Goodwill of $75.5M (principally from the November 2025 Grassform acquisition, which generated $27.8M of goodwill) receives a 0% recovery haircut per the lens, as does $19.7M of other intangibles (customer relationships and tradename from Grassform). Combined, these two intangible categories wipe out $95.2M of book value. Operating lease ROU assets of $10.2M also receive 0% recovery credit. Net trade receivables of $57.3M (gross $57.7M, allowance $0.4M) recover at 90-95%, contributing approximately $51-$54M. Cash of $6.5M recovers at 100%. Inventory of $9.3M recovers at 60%, contributing approximately $5.6M.

Liability side holds at face: total recorded liabilities are $78.1M, consisting of $52.0M current liabilities (AP $23.1M, accrued liabilities $24.1M, current debt $4.8M), $5.7M long-term debt (finance leases only, Credit Facility drawn to zero at quarter-end), $9.1M operating lease liabilities noncurrent, $7.2M deferred tax liabilities, and $4.1M other noncurrent liabilities. The outstanding $1.3M net liability related to the Fluids Systems sale (indemnification obligations to SCF Partners) is already captured in accrued liabilities. The $6.7M in letters of credit, performance bonds, and guarantees are not on-balance-sheet but represent contingent obligations that would remain in a wind-down.

Compared to the prior annual filing (December 31, 2025), the key liquidation-relevant changes are: (1) total debt declined from $16.9M to $10.6M as the Credit Facility revolver was paid down; (2) PP&E increased as $16.7M of capex was deployed in Q1 2026, partially offset by depreciation of $8.2M; (3) goodwill and intangibles are effectively unchanged from year-end reflecting no new acquisitions or impairments. The board has approved a $40-45M manufacturing capacity expansion to be deployed over the next five quarters — this forward capex commitment is disclosed in MD&A but is not separately tagged in XBRL and does not appear as a balance-sheet line. It would consume available liquidity and reduce the cash buffer available in a hypothetical liquidation scenario.

MFFAIS CLV of -$60.3M, LLV of -$3.0M, and OLV of $6.4M reflect the intangible write-down and PP&E haircut math described above. The positive OLV ($6.4M) reflects the going-concern operating leverage of the rental fleet but is barely above water. The CLV figure (-$60.3M) reflects full haircuts including the goodwill zero-out. The company is solvent on a book and liquidation basis if intangibles are partially recovered, but a forced-sale scenario under stressed PP&E recovery assumptions would compress equity recovery significantly.