Mercer International Inc. announced that it and one non-operating subsidiary have filed for voluntary Chapter 11 bankruptcy on November 9, 2026, to implement a prepackaged plan of reorganization. The restructuring is supported by holders of its senior notes and existing common stock and aims to comprehensively restructure the company's debt and capital structure. Mercer's operating subsidiaries are not part of the bankruptcy filing and will continue to operate their businesses as usual.
Key Details
- Bankruptcy Filing: The company filed in the U.S. Bankruptcy Court for the Southern District of Texas on November 9, 2026, and expects to complete the restructuring by the end of 2026.
- Restructuring Terms: Existing common stock will be cancelled. Holders of Senior Notes will receive 91.5% of the new common stock and 56.5% of new convertible preferred stock. Existing equity holders will receive 8.5% of new common stock and 3.5% of new convertible preferred stock.
- New Capital: The plan includes a fully backstopped rights offering for $420.0 million of New Money Senior Secured Notes to provide new liquidity.
- Other Creditors: General unsecured creditors, including trade creditors, are expected to be unimpaired and paid in full in the ordinary course of business.