Reynolds Consumer Products Inc. (REYN) presents a deeply negative liquidation posture as of March 31, 2026, consistent with MFFAIS-reported CLV of -$2.15B and OLV of -$1.15B. The capital structure is dominated by intangible and goodwill assets that carry zero recovery value under liquidation assumptions, while the liability stack remains at face value. Total GAAP assets of $4.93B are heavily impaired under liquidation haircuts: goodwill of $1.90B and other intangibles of $0.94B together represent approximately 57% of total assets and receive $0 recovery. PP&E net of $838M receives a 50-70% haircut, yielding an estimated $420-$590M. Inventory of $637M at a 60% recovery yields approximately $382M. Accounts receivable of $368M at 90-95% yields approximately $331-$350M. Cash of $71M is recovered at par. Rough liquidation asset recovery: approximately $1.2-1.4B against total liabilities at face value of $2.67B, implying a recovery shortfall to equity of approximately $1.3-1.5B before winddown costs, consistent with the MFFAIS CLV figure. The primary drivers of the negative recovery are (1) $1.90B goodwill and $0.94B intangibles that are worthless in liquidation, and (2) $1.54B term loan outstanding (Term Loan Facility, Amendment No. 4, maturing March 2032) that stays at face value. Operating leases add $103M in non-cancellable lease liabilities ($25M current, $78M non-current) that do not extinguish on wind-up. Deferred income tax liabilities of $352M also remain at face value on the liability side. Compared to the prior filing (10-K as of December 31, 2025), total assets declined marginally from $4.94B to $4.93B. Long-term debt declined from approximately $1.58B to $1.53B following a $50M voluntary principal prepayment in Q1 2026, modestly improving (but not materially altering) the recovery posture. The January 2026 segment reorganization reallocated $803M of goodwill across new segments but did not alter consolidated goodwill, total assets, or liabilities. Goodwill impairment testing was performed before and after the reorganization with no impairment indicated; however, goodwill remains a zero-recovery asset regardless. No pension obligation is separately quantified in XBRL tags beyond a $13M post-employment benefits non-current liability. The filing discusses the $95M accounts receivable factoring facility (no balances outstanding at March 31, 2026) and a supply chain finance program with $9M confirmed obligations included in accounts payable; neither materially shifts the liquidation calculus. Interest rate swaps with $900M notional are in a net asset position (derivative liabilities dropped to $0 from $1M at year-end 2025), a negligible change.
▼ Community Notes