Mercer reported third quarter revenue of $440.7 million, missing consensus estimates, and a net loss of $59.2 million. The company is actively moving toward a prepackaged Chapter 11 filing to implement a comprehensive recapitalization plan intended to eliminate $96 million in annual interest and provide $400 million in new liquidity.
Key Highlights
- Operating EBITDA improved to negative $2.9 million from negative $28.1 million in the prior year, despite an $8.0 million non-cash inventory impairment.
- The "One Goal One Hundred" program remains on track with $22.0 million in quarterly savings, reaching $76.0 million of the $100 million annual target.
- Pulp segment results were hampered by 44 days of planned maintenance downtime, resulting in a $34.1 million adverse impact on Operating EBITDA.
- Restructuring support agreements cover over 87% of senior notes, facilitating a swap of approximately $1.1 billion in debt for new equity.