Mercer International Announces Recapitalization and Planned Chapter 11 Filing
The plan, backed by holders of over 87% of senior notes and a majority of common shareholders, would reduce senior note debt by approximately 88% and raise $400 million through a rights offering of new senior secured notes. Existing shareholders are expected to receive approximately 8.5% of new common stock and 3.5% of new convertible preferred stock. Mercer extended the grace period for an overdue interest payment on its 2028 notes from 30 to 90 days, expects to complete the process by the end of 2026, and anticipates Nasdaq delisting with a move to OTC trading.
Mercer International Inc. announced a comprehensive recapitalization plan supported by holders of over 87% of its senior notes and a majority of its common shareholders. The restructuring involves a prepackaged Chapter 11 bankruptcy filing intended to reduce the company's senior note debt by approximately 88% and provide $400 million in new capital through a rights offering of new senior secured notes. Existing shareholders are expected to receive approximately 8.5% of the new common stock and 3.5% of the new convertible preferred stock in the reorganized entity.
The company also extended the grace period for an overdue interest payment on its 2028 notes from 30 to 90 days. Mercer expects to complete the process by the end of 2026 and anticipates a delisting from Nasdaq, with plans to move to over-the-counter trading.