Enviva enters voluntary Chapter 11 proceedings

Published 5:21 pm Friday, March 15, 2024

BETHESDA, MD – Local mills operated by Enviva will remain in operation as the company commences voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Eastern District of Virginia to implement a pre-arranged restructuring plan.

Among its pellet producing mills in North Carolina are operations in Ahoskie and Garysburg.

Company officials said construction will continue on its new plant in Epes, Alabama, following a timetable of have that mill operational by early 2025.

However, the company has suspended development of a planned facility in Bond, Mississippi. Enviva officials say they will reconsider plans for that mill after the restructuring effort is completed.

The restructuring plans are designed to “reduce the company’s debt by approximately $1.0 billion, as well as improve profitability, strengthen liquidity, and better position the business for longterm success as the world’s largest producer of industrial wood pellets,” according to a press release sent to this newspaper.

Enviva has also secured commitments for $500 million in debtor-in-possession financing (DIP Facility) and other financing accommodations from the Ad Hoc Group, a portion of which will be allocated by the company to eligible stockholders in accordance with a syndication process that is subject to court approval. The DIP Facility is expected to provide sufficient liquidity to support continued operations across Enviva’s business throughout the restructuring process, as well as help fund the

completion of the new plant in Alabama.

Glenn Nunziata, Interim Chief Executive Officer and Chief Financial Officer commented,

“These agreements with our lenders and noteholders represent a significant milestone in the ongoing process to transform our business, as we focus on improving profitability, reducing costs, enhancing asset productivity, and optimizing our capital structure,” stated Glenn Nunziata, the company’s Interim Chief Executive Officer and Chief Financial Officer. “We look forward to emerging from this process as a stronger company with a solid financial foundation and better positioned to be a leader in the future growth of the wood-based biomass industry. We appreciate the support of our lenders, our vendors, and our customers, and the tremendous efforts of our entire team as we continue to execute our transformation plan.”

The restructuring is targeted to be completed during the fourth quarter of 2024.

Enviva Inc. (NYSE: EVA) is the world’s largest producer of industrial wood pellets, a renewable and sustainable energy source produced by aggregating a natural resource, wood fiber, and processing it into a transportable form, wood pellets. The majority of those pellets are shipped to customers in the United Kingdom, the European Union, and Japan.