Enviva Announces Successful Emergence from Financial Restructuring Process Positioned for Sustainable Growth and Continued Market Leadership

December 06, 2024 at 16:18 PM EST

Strengthened Balance Sheet and Improved Financial Flexibility Through Elimination of Approximately $1.0 Billion of Prepetition Debt

Enhanced Earnings Profile Achieved Through Restructuring Actions Accomplished

Ample Liquidity to Successfully Complete the Ramp of Enviva’s Epes, Alabama Facility and to Support Growing Customer Demand for Sustainable Energy Solutions

Enviva, LLC (“Enviva” or the “Company”), a leading producer of industrial wood pellets, today announced its successful emergence from Chapter 11 bankruptcy protection, marking a significant milestone in the Company’s strategic transformation. Enviva is well-positioned for long-term growth and consistent operating performance, allowing the Company to serve its customers as a market leader and critical partner in meeting their demand for renewable fuel. Enviva’s Plan of Reorganization (the “Plan”) was confirmed by the U.S. Bankruptcy Court for the Eastern District of Virginia, with overwhelming 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 Company. As a result of this, the Company’s liquidity and financial profile is very strong and the Company has no near-term debt maturities. The secured funding also fully finances completion of the Company’s 11^th production plant, under construction in Epes, Alabama, which is anticipated to produce its first pellets in May 2025. Once fully ramped, the Company expects the new plant to produce ~1 million metric tons of wood pellets per year, providing a significant opportunity to sell into new and existing markets.

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,” said Glenn Nunziata, Enviva’s Chief Executive Officer. “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 (“Board”) comprising representatives from key shareholders, including AIP, Keyframe Capital Partners, L.P., and Ares Management funds, who bring valuable financial, operational, and end-market experience to support Enviva’s operations and future growth.

Jan Trnka-Amrhein, member of Enviva’s Board and Partner at AIP, added, "Enviva’s best-in-class portfolio of production assets and robust logistics capabilities allows for the Company to be the go-to partner for woody biomass renewable energy solutions. We see an immense opportunity for growth and expansion in the markets in which Enviva operates, and we’re confident that Enviva is well equipped to reliably meet its customers’ growing demand for biomass products.”

Enviva extends its gratitude to its employees, customers, suppliers, and other partners for their support throughout the restructuring process.

Paul, Weiss, Rifkind, Wharton & Garrison LLP, Vinson & Elkins LLP, and Kutak Rock LLP served as legal counsel, Lazard served as investment banker, and Alvarez & Marsal North America, LLC served as restructuring advisor to Enviva. The Ad Hoc Group of Creditors was represented by Davis Polk & Wardwell LLP and McGuireWoods LLP as legal counsel and Evercore Group LLC as investment banker.

About Enviva

Enviva, LLC is a leading producer of industrial wood pellets, a renewable energy source produced by aggregating a natural resource, wood fiber, and processing it into a transportable form, wood pellets. Enviva owns and operates ten plants in Virginia, North Carolina, South Carolina, Georgia, Florida, and Mississippi, and is constructing its 11th plant in Epes, Alabama. Enviva sells most of its wood pellets through long-term, take-or-pay off-take contracts with customers located primarily in the United Kingdom, the European Union, and Japan, helping to accelerate the energy transition away from conventional energy sources in hard-to-abate sectors like steel, cement, lime, chemicals, and aviation. Enviva exports its wood pellets to global markets through its deep-water marine terminals at the Port of Chesapeake, Virginia, the Port of Wilmington, North Carolina, and the Port of Pascagoula, Mississippi, and from third-party deep-water marine terminals in Savannah, Georgia, Mobile, Alabama, and Panama City, Florida.

Learn more at www.envivabiomass.com and follow us on social media @Enviva.