Enviva Announces Successful Emergence From Chapter 11

Enviva has announced its successful emergence from Chapter 11 bankruptcy protection, marking a significant milestone in the company’s strategic transformation. Enviva’s Plan of Reorganization was confirmed by the U.S. Bankruptcy Court for the Eastern District of Virginia, with support from the company’s key stakeholders and business partners. As part of its financial restructuring, Enviva has equitized more than $1 billion of indebtedness and American Industrial Partners Capital Fund VIII (AIP) has become the largest shareholder of the company.

To support ongoing operations and future growth initiatives, Enviva is capitalized at emergence with an attractive exit loan facility, as well as access to further capital through a delayed draw term loan. As part of the Plan, stakeholders provided $250 million of new money financing through an Equity Rights Offering to help fund the recapitalization of the Enviva. As a result of this, Enviva’s liquidity and financial profile is very strong, with no near-term debt maturities. The secured funding also fully finances completion of the production plant, under construction in Epes, Ala., which is anticipated to press its first pellets in May 2025. Once fully ramped, the Epes plant will add 1 million metric tons to Enviva’s existing production capacity across 11 total sites.

Also on emergence, Glenn Nunziata, who most recently served as Interim Chief Executive Officer and Chief Financial Officer, has been appointed Chief Executive Officer, and James Geraghty, who formerly served as Executive Vice President of Finance, has been named Chief Financial Officer.

“Emergence is a critical milestone and exciting step forward in positioning Enviva for a successful future,” says Glenn Nunziata. “On behalf of Enviva, I want to express our gratitude to all our stakeholders, especially our customers and associates, for their continued business and support. With a substantially reduced debt burden and dramatically improved liquidity profile, we are well-positioned to serve our customers reliably as a leading producer of industrial wood pellets and to rebuild trust and confidence in the communities in which we operate and markets in which we sell our product.”

In connection with emergence, Enviva will operate as a private company with a new Board of Managers comprising representatives from shareholders, including AIP, Keyframe Capital Partners, L.P., and Ares Management funds.