RPM International (RPM) at February 28, 2026 carries a deeply negative liquidation value under the standard recovery-haircut framework, consistent with its prior periods and with the MFFAIS CLV of negative $1.39B. The balance sheet totals $7.88B in assets against $4.74B in total liabilities (current $1.34B plus noncurrent $3.40B), leaving GAAP book equity of $3.15B. Under liquidation haircuts, that equity evaporates: cash of $294M recovers at par, AR of $1.22B (net) recovers at roughly $1.10-1.16B (90-95%), inventory of $1.12B recovers at approximately $672M (60%), and PP&E of $1.52B net (gross $2.89B) recovers at $760M-$1.06B (50-70%). Goodwill of $1.68B and other intangibles of $821M are assigned zero recovery. Deferred tax assets of $161M are also effectively zero in liquidation. The dominant liability-side items remain long-term debt of $2.55B (noncurrent) plus current debt of $8M, operating lease obligations of $343M noncurrent, and pension/post-retirement obligations embedded in the $245M other noncurrent liabilities. All face-value liabilities extinguish first. The resulting liquidation shortfall to equity is substantial. Versus the prior filing (November 30, 2025), the balance sheet is modestly changed: cash declined slightly from $288M offshore-plus-domestic levels, AR increased seasonally, the AR securitization program balance fell to $239M from $300M (partially reducing off-balance-sheet-equivalent debt), and the revolving credit facility was extended to February 2031 with streamlined covenants. Total debt at face value is unchanged in material terms. Restructuring charges of $33.2M nine-month cumulative signal continued footprint rationalization (facility closures, severance), which shifts some tangible to intangible-class costs but does not materially alter the liquidation calculus. The Net Leverage Ratio of 1.77x provides comfort on going-concern but is irrelevant to the liquidation posture—the structural intangible-heavy asset base and face-value debt stack produce the same deeply negative recovery regardless of operating performance.
▼ Community Notes