Terra Innovatum Global N.V. — financial distress indicators
Financial-health summary
Terra Innovatum Global N.V.'s reported numbers place it in the 'Weak' financial-health band (distress score 51/100). The main indicators are liabilities exceed assets (negative equity), share price down >80% from 52-week high and massive shareholder dilution. Independently, the Ohlson accounting model puts its 1-year failure probability at 0%. In its favour: strong current ratio (21.34).
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Total liabilities are 1.97× total assets.
Balance-sheet insolvency test: debts exceeding the fair value of assets is the statutory definition of 'insolvent' in 11 U.S.C. §101(32).
Price is -82% from its 52-week high.
Equity markets price distress early; collapses of this size usually reflect fear of wipe-out in a restructuring.
Share count up +57% in a year.
Survival financing: repeated equity raises at depressed prices.
Recurring net losses.
Repeated losses are a core input in both Ohlson and Altman failure models.
Operating cash flow negative in 3 of the last 3 years. The company is profitable, so this likely reflects working-capital or loan-book growth.
A business that cannot fund itself from operations depends on external capital to survive.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Strong current ratio (21.34).
- High insider/promoter ownership (78%) aligns management with survival.
📰 Recent news scan
- Terra Innovatum Welcomes Italy’s Historic Return to Nuclear EnergyYahoo Finance · 2026-09-24
- Terra Innovatum Strengthens Board With Appointment of Three New Independent DirectorsYahoo Finance · 2026-09-23
- Terra Innovatum Global NV (NKLR) (Q2 2026) Earnings Call Highlights: Advancing NRC Licensing ...Yahoo Finance · 2026-08-27
- NRC Commences Readiness Assessment of Terra Innovatum’s SOLO™ Construction Permit Application (CPA)Yahoo Finance · 2026-08-19
- Terra Innovatum Targets 2027 Illinois Debut for SOLO MicroreactorYahoo Finance · 2026-08-15
- Terra Innovatum to Participate in Canaccord Genuity’s 46th Annual Growth ConferenceYahoo Finance · 2026-08-10
⚖️ U.S. legal pathway — Title 11, U.S. Code
Which chapter would apply?
- Chapter 11 — reorganisation. Management usually stays in control as debtor-in-possession; the automatic stay (§362) halts collection; a plan must meet the best-interests test (§1129(a)(7)) and the absolute priority rule (§1129(b)) — creditors are paid before shareholders, who are frequently wiped out.
- Chapter 7 — liquidation. A trustee sells assets and distributes proceeds by statutory priority (§§507, 726).
- Subchapter V (“Chapter 5”) is a fast track for small-business debtors under a statutory debt cap, but SEC-reporting companies are excluded (§101(51D)) — so it rarely applies to listed companies.
What typically triggers a filing
- Payment default or covenant breach lenders will not waive; a debt maturity that cannot be refinanced.
- Auditor going-concern doubt (ASC 205-40 / PCAOB AS 2415) — often itself a default trigger in loan agreements.
- Creditors can force a case with an involuntary petition (§303) if debts are not paid as they come due.
- Delisting after sustained sub-$1 prices or equity deficits cuts off equity funding.
Transactions shortly before filing can be clawed back (preferences — 90 days, §547; fraudulent transfers — 2 years, §548).
Frequently asked questions
What do Terra Innovatum Global N.V.'s financial-health indicators show?
As of 2026-10-08, Terra Innovatum Global N.V.'s public financial data places it in the 'Weak' band with a distress score of 51/100, driven by liabilities exceed assets (negative equity), share price down >80% from 52-week high and massive shareholder dilution. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is Terra Innovatum Global N.V.'s financial distress score?
51/100 ('Weak'). Ohlson O-score -6.65 (model 1-year failure probability 0%).
What works in Terra Innovatum Global N.V.'s favour?
Strong current ratio (21.34). High insider/promoter ownership (78%) aligns management with survival.
How are shareholders treated if a company enters insolvency?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.
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Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.