Maroc - TIMBERBIZ.COM.AU - A La Une - 08/Dec 23:49

Enviva emerges from bankruptcy

Enviva announced its successful emergence from Chapter 11 bankruptcy protection, marking a significant milestone in the company’s strategic transformation. Source: Business Wire Enviva is well-positioned for long-term growth and consistent operating performance, allowing the company to serve its customers as a market leader and critical partner in meeting their demand for renewable fuel. Enviva’s Plan of Reorganization (the “Plan”) was confirmed by the US Bankruptcy Court for the Eastern District of Virginia, with overwhelming support from the company’s key stakeholders and business partners. As part of its financial restructuring, Enviva has equitized more than US$1 billion of indebtedness and American Industrial Partners Capital Fund VIII (“AIP”) has become the largest shareholder of the company. To support ongoing operations and future growth initiatives, Enviva is capitalized at emergence with an attractive exit loan facility, as well as access to further capital through a delayed draw term loan. As part of the Plan, stakeholders provided US$250 million of new money financing through an Equity Rights Offering to help fund the recapitalization of the company. As a result of this, the company’s liquidity and financial profile is very strong, and the company has no near-term debt maturities. The secured funding also fully finances completion of the company’s 11th production plant, under construction in Epes, Alabama, which is anticipated to produce its first pellets in May 2025. Once fully ramped, the company expects the new plant to produce ~1 million metric tons of wood pellets per year, providing a significant opportunity to sell into new and existing markets. Glenn Nunziata, who most recently served as Interim Chief Executive Officer and Chief Financial Officer, has been appointed Chief Executive Officer, and James Geraghty, who formerly served as Executive Vice President of Finance, has been named Chief Financial Officer. In connection with emergence, Enviva will operate as a private company with a new board of managers comprising representatives from key shareholders, including AIP, Keyframe Capital Partners, L.P., and Ares Management funds, who bring valuable financial, operational, and end-market experience to support Enviva’s operations and future growth.