Enviva successfully emerges from restructuring process

Article by Holzkurier editorial team (adapted for holzkurier.com; translated by Eva Guzely) | 12.12.2024 - 09:35

In mid-November, Enviva, the world’s largest wood pellet producer with headquarters in Bethesda (USA), successfully emerged from restructuring proceedings under Chapter 11 of the U.S. Bankruptcy Code. As part of its financial restructuring, Enviva has equitized more than US-$1 billion of indebtedness. According to Enviva, an additional US-$250 million of new money financing through an Equity Rights Offering helped create a stable financial base which ensures sufficient liquidity.

On November 14, the U.S. Bankruptcy Court for the Eastern District of Virginia approved the Plan of Reorganization, which was supported by key stakeholders as well. American Industrial Partners Capital Fund VIII (AIP) is now Enviva’s largest shareholder. The financial restructuring has equitized over US-$1 billion in pre-bankruptcy debts.

To support ongoing operations and future growth initiatives, Enviva was provided with an additional US-$250 million in a deferred term loan following the completion of Chapter 11 proceedings. According to the Enviva, its “liquidity and financial profile is very strong and the company has no near-term debt maturities”. The pellet plant in Epes, Alabama, with a capacity of 1 million t a year, is scheduled to go into operation by the end of May 2025.

Glenn Nunziata, who most recently served as Interim CEO and CFO, has been appointed Chief Executive Officer, and James Geraghty, formerly Enviva’s Executive Vice President of Finance, has been named Chief Financial Officer. Furthermore, representatives from key shareholders, including AIP, Keyframe Capital Partners and Ares Management Funds, will be part of the Board of Managers.