Enviva Successfully Emerges from Chapter 11, Positioned for Growth and Market Leadership
Enviva, LLC (“Enviva” or the “Company”), a leading producer of industrial wood pellets, has successfully emerged from Chapter 11 bankruptcy protection, marking a key milestone in the Company’s strategic transformation. This emergence paves the way for Enviva to achieve long-term growth, strengthen its operational performance, and continue its role as a market leader and essential partner in providing sustainable energy solutions.
The U.S. Bankruptcy Court for the Eastern District of Virginia has confirmed Enviva’s Plan of Reorganization (the “Plan”), which received overwhelming support from the Company’s stakeholders and business partners. As part of this restructuring process, Enviva has eliminated more than $1 billion of prepetition debt, significantly improving its financial flexibility and balance sheet.
Key Restructuring Actions and Strengthened Financial Position
The successful restructuring has equitized over $1 billion in debt, marking a substantial reduction in the Company’s financial obligations. American Industrial Partners Capital Fund VIII (“AIP”) has become the largest shareholder of Enviva, taking an active role in the company’s future direction.
As part of its reorganization, Enviva is emerging with a robust financial profile. The Company has secured an attractive exit loan facility and has access to additional capital through a delayed draw term loan. Moreover, Enviva has received $250 million in new financing through an Equity Rights Offering, providing the liquidity needed to fund the recapitalization process and support future growth.
The Company is well-capitalized and has no near-term debt maturities, which strengthens its position to execute on its strategic objectives. This financial stability also ensures the successful completion of Enviva’s 11th production facility, under construction in Epes, Alabama. Once operational in May 2025, the Epes facility is expected to produce approximately 1 million metric tons of wood pellets per year, contributing significantly to the Company’s capacity to serve both existing and new markets.
Leadership Changes and Vision for the Future
In conjunction with the Company’s emergence, Glenn Nunziata, who previously served as Interim CEO and Chief Financial Officer, has been appointed as Enviva’s permanent Chief Executive Officer. James Geraghty, formerly Executive Vice President of Finance, has been named the new Chief Financial Officer. These leadership changes are aimed at positioning Enviva for continued success and stability moving forward.
“Emerging from Chapter 11 is a critical step in positioning Enviva for a strong and successful future,” said Glenn Nunziata, CEO of Enviva. “We are deeply grateful to all our stakeholders, particularly our customers and employees, for their unwavering support throughout this process. With our significantly reduced debt and enhanced liquidity, Enviva is now in a much stronger position to meet the growing demand for industrial wood pellets and rebuild trust within the communities where we operate.”
Nunziata added, “This restructuring marks a new chapter for Enviva, and we are committed to continuing to serve our customers reliably and expanding our role as a leading producer of renewable energy solutions.”
Support from Key Shareholders and New Board Structure
As part of its emergence, Enviva will operate as a private company with a newly structured Board of Managers. The new Board will include representatives from key stakeholders, including AIP, Keyframe Capital Partners, L.P., and Ares Management funds. These new Board members bring invaluable experience in financial management, operations, and market development to guide Enviva through its next phase of growth.
Jan Trnka-Amrhein, a member of Enviva’s Board and Partner at AIP, emphasized the company’s strong market position and growth potential. “Enviva’s best-in-class portfolio of production assets, combined with its robust logistics capabilities, positions the company as the leading partner for sustainable biomass energy solutions,” Trnka-Amrhein said. “We see tremendous growth opportunities in the markets Enviva serves and are confident that the company is well-positioned to meet the increasing demand for renewable biomass products.”
Gratitude for Stakeholder Support and Future Outlook
Enviva extends its sincere appreciation to its employees, customers, suppliers, and other business partners who have supported the company throughout the restructuring process. The successful emergence from Chapter 11 represents the start of a new era for Enviva, with a stronger financial foundation and a renewed focus on delivering sustainable energy solutions.
The restructuring process was guided by a team of legal and financial advisors, including Paul, Weiss, Rifkind, Wharton & Garrison LLP, Vinson & Elkins LLP, and Kutak Rock LLP as legal counsel. Lazard served as the investment banker, while Alvarez & Marsal North America, LLC acted as the restructuring advisor. The Ad Hoc Group of Creditors was represented by Davis Polk & Wardwell LLP and McGuireWoods LLP as legal counsel, and Evercore Group LLC as the investment banker.
As Enviva looks to the future, the company is well-positioned to capitalize on new growth opportunities, further solidify its leadership in the renewable energy market, and continue providing essential products to meet the increasing demand for sustainable energy solutions globally.
