The groundbreaking ceremony for a pellet mill with a capacity of 1.1 million t/yr in Epes, Alabama only took place in the summer of last year. According to Enviva’s management, financing of the construction is secured © Enviva / Alabama Governor's Office 2021
The two restructuring proceedings will be handled by the U.S. Bankruptcy Court for the Eastern District of Virginia. In this type of proceeding, which is particularly popular with large corporations, the debtor is granted temporary protection from their creditors so as to have time for a financial reorganization or restructuring.
As Enviva states, it has already secured commitments for US-$500 million in debtor-in-possession financing (“DIP Facility”) and other financing accommodations. These are supposed to provide the necessary funding to continue operations across Enviva’s business throughout the restructuring process, as well as help fund the completion of the group’s new pellet mill in Epes. Enviva started building the mill with its annual capacity of 1.1 million tonnes last year and plans to put it into operation in 2025. The construction of the greenfield production site in Bond, Mississippi, on the other hand, is to be put on the back burner for up to one year.
Glenn Nunziata, who became the new interim CEO and CFO in November and the successor of the Austrian Thomas Meth, is optimistic and explains that the restructuring process will have a positive impact of the group’s future capital structure. After the scheduled completion of the restructuring in the fourth quarter of 2024, Enviva wants to have a solid financial foundation and be better positioned to be a leader in the renewables sector in the future as well.
Enviva also expects that it will be able to continue to pay suppliers in the ordinary course for authorized goods received and services provided throughout the entire restructuring process.
Recently, there was also discussion about a possible delisting of Enviva’s shares from the New York Stock Exchange after their value had plummeted from US-$87.7 in April 2022 to a temporary low of US-$0.29 in February). In this respect, too, the management of the US energy giant is optimistic and anticipates the continued listing of its common stock.
