Reading International (RDI) is a motion picture exhibitor and real estate operator with period-end December 31, 2025, reporting under a 10-K/A filing. MFFAIS liquidation metrics are deeply negative: CLV -$430M, LLV -$426M, OLV -$424M, consistent with the structural liability excess visible in the balance sheet. Total assets of $434.9M are overwhelmed by total liabilities of $453.0M, producing a book deficit of approximately $18.1M before NCI. Under liquidation haircuts, the asset-side deteriorates further: PP&E net book value is approximately $93M (gross $304M less $211M accumulated depreciation), which at a 50-60% recovery yields roughly $47-56M; operating lease ROU assets of $159.7M carry zero liquidation value as the offsetting ASC 842 liability ($183M) exceeds the asset and the lease obligations survive winding up; goodwill of $24.6M and intangibles of $1.6M recover nothing; the $10.5M cash balance recovers at par. Against these haircut assets, liabilities remain at face: long-term debt gross of $185.1M (with $83.2M due within 12 months per the maturity schedule, including the Bank of America revolving facility subject to its eleventh amendment dated December 29, 2025), operating lease liabilities of $183M, current liabilities of $128.6M (including $36M current portion of notes payable, $52.8M accounts payable/accrued liabilities, $11.3M deferred revenue, $20.1M current operating lease), pension obligation of $2.3M, and other noncurrent liabilities of $13.1M. The total undiscounted operating lease payment stream is $238.1M with $111.4M due beyond year five, a long-duration tail that does not extinguish on winding up. A material Q4 2025 related-party transaction closed December 19, 2025: RDI acquired Sutton Hill Associates (SHA) for $1 cash plus guaranty of approximately $7.6M of third-party SHA indebtedness, obtaining the remaining 25% interest in Sutton Hill Properties LLC (Cinema 1,2&3) and the Village East ground lessee interest. The previously-carried $5.9M option purchase price short-term liability was settled through this acquisition. This transaction shifted assets from minority-owned to wholly-owned but also absorbed a new guarantee liability. The Bank of America credit facility has required eleven waiver/amendment agreements since origination, indicating sustained covenant stress; the eleventh amendment was executed December 29, 2025, one day before period end. Filing discusses the SHA acquisition and related debt guaranty in MD&A/related-party section but specific line items for the acquired assets and assumed guaranty indebtedness are not separately XBRL-tagged beyond consolidated balance sheet totals. The deferred tax asset gross of $119.7M is offset by a $70.1M valuation allowance, netting to $2.6M — the large DTA carries zero liquidation value as it cannot be monetized outside of continuing operations.
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