Mercer International Inc. Takes Next Step to Implement Recapitalization and Effectuate Balance Sheet Restructuring

Mercer International Inc. has commenced a pre-packaged Chapter 11 bankruptcy filing with support from holders of over 88% of its senior notes. The restructuring aims to reduce senior note debt by approximately 88%, eliminate over $100 million in annual interest payments, and inject $400 million in new capital through a fully backstopped rights offering. The company expects to emerge by end of 2026 with operations continuing normally.