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Mercer International Files for Bankruptcy, Says B.C. Operations Will Continue as Usual
The restructuring would cut senior note debt by 88% and add $400 million in new capital, the company said.
- On Monday, Nov 2, Mercer International filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Southern District of Texas, Houston Division.
- Indications of financial difficulties surfaced for several months, prompting Mercer to address almost $1.3 billion of senior notes through an equity exchange reducing debt by 88 per cent.
- An ad hoc group will provide $400 million of new capital while Mercer employs over 1,000 people across British Columbia locations including Castlegar, Lumby, Penticton, Okanagan Falls, and Vancouver.
- Confirmation of the reorganization plan is expected within 45 days, with completion by end of 2026, as Mercer president and chief executive officer Juan Carlos Bueno stated the transaction is "a decisive step forward."
- Mercer expects Nasdaq to delist its securities during proceedings but intends to apply for listing on a national securities exchange upon emerging from restructuring.
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Total News Sources14
Leaning Left12Leaning Right0Center1Last UpdatedBias Distribution92% Left
Bias Distribution
- 92% of the sources lean Left
92% Left
L 92%
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