🔴 Mercer International is trading 6% down as Chapter 11 recapitalization raises dilution concerns

Mercer International is trading 6% down at $0.24 as its prepackaged Chapter 11 recapitalization raises shareholder-dilution concerns.

• About $1.1 billion of debt is to be exchanged for equity; existing shares could be cancelled under the restructuring terms.
• The November 5 earnings report and November 6 call detailed the restructuring; available coverage does not establish a separate November 9 announcement as the trigger.
• The decline came despite positive broader-market context, which does not explain it.