Mercer International Begins Prepackaged Chapter 11 Restructuring
The company began a U.S. bankruptcy-court process to execute a previously announced recapitalization. The plan would reduce senior note debt by approximately 88%, eliminate over $100 million in annual cash interest payments and raise roughly $400 million through a rights offering. Operating subsidiaries are excluded from the cases. Mercer expects completion by the end of 2026 and anticipates a potential Nasdaq trading suspension for its common stock.
Mercer International Inc. has commenced a prepackaged Chapter 11 restructuring process in the U.S. Bankruptcy Court for the Southern District of Texas to execute a previously announced recapitalization. The plan is supported by holders of over 88% of the company's 12.875% Senior Notes due 2028 and 5.125% Senior Notes due 2029.
The restructuring aims to reduce existing senior note debt by approximately 88%, eliminate over $100 million in annual cash interest payments, and inject roughly $400 million of new capital through a rights offering. Mercer's operating subsidiaries are not part of the Chapter 11 cases and will continue business as usual. The company expects to complete the process by the end of 2026 and anticipates a potential suspension of its common stock trading on Nasdaq.