Sinclair, Inc. (SBGI) presents a deeply negative liquidation posture as of March 31, 2026. Total assets are $5.78B against total liabilities of $5.38B, leaving book equity of $392M (including noncontrolling interests) or $467M attributable to Sinclair. Under liquidation-lens haircuts, recovery to equity is negative. The asset side is dominated by goodwill ($2.08B, zero liquidation value), indefinite-lived intangibles ($27M, zero value), and PP&E/right-of-use assets ($640M + $112M, recoverable at 50-70%). Tangible liquid assets are more favorable: cash at $844M (100% recovery), AR net of allowance at $631M (90-95% recovery, approximately $567-$599M). The liability stack is anchored by $4.35B in long-term debt at face value, with the largest instruments being the 8.125% First-Out First Lien Notes due 2033 ($1.43B face), Term Loan B-6 due 2029 ($704M face), Term Loan B-7 due 2030 ($724M face), and 5.5% Senior Notes due 2030 ($485M face). The A/R Facility adds $375M. Subordinated to first-lien is the 9.75% Second Lien Notes ($432M face), trading below par at approximately $477M fair value, and the 4.375% Second-Out First Lien Notes ($238M face, fair value $184M, a 23% discount signaling market stress on subordinated tranches). On-balance-sheet operating and finance lease obligations ($138M combined current and noncurrent) survive liquidation at face. Program rights obligations ($57M current, $12M noncurrent) extinguish only partially upon windup. Other noncurrent liabilities of $177M and deferred tax liabilities of $57M remain at face. Post-April 2026, STG repurchased $93M of TL B-6 and $72M of TL B-7 at discounts, reducing gross debt modestly but not materially altering the liquidation posture given the scale. The MFFAIS CLV of $59M and LLV/OLV of $690M are consistent with the finding that the entity is deeply leveraged but carries meaningful liquid assets; under a strict liquidation scenario the equity recovery is negative once intangibles are zeroed and debt is settled at face. FCC license intangibles are being amortized beginning January 1, 2026 per a change in accounting estimate disclosed in MD&A but not separately tagged in XBRL as a distinct balance-sheet line — relevant because it signals these assets are no longer treated as indefinite-lived, though liquidation value remains negligible. Deferred revenue ($155M total, $87M noncurrent) represents a liability that does not extinguish at face in a normal windup context but would require settlement or refund. The $152M non-current income tax receivable is a meaningful recoverable asset contingent on IRS processing.
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