Mercer International stock enters Chapter 11 restructuring process

Mercer International Inc. began the next phase of its recapitalization on Monday, November 9, 2026, by commencing voluntary prepackaged Chapter 11 cases for the parent company and one non-operating subsidiary. The company said the process is designed to reduce debt and strengthen liquidity while its operating subsidiaries continue business as usual.

The filing followed a restructuring support agreement with holders of more than 88% of the aggregate principal amount of Mercer's 12.875% senior notes due 2028 and 5.125% senior notes due 2029. The company announced the development in a Mercer International release.

Debt reduction remains central

Upon emergence, Mercer expects to reduce its existing senior note debt by approximately 88% and eliminate more than 100 million US dollars of annual cash interest payments. The plan also includes approximately 400 million US dollars of new capital through a fully backstopped rights offering.

Completion remains subject to confirmation of the plan by the United States Bankruptcy Court for the Southern District of Texas, satisfaction or waiver of effectiveness conditions and requisite regulatory approvals. Mercer expects to complete the recapitalization by the end of calendar year 2026.

Operations continue during proceedings

Mercer said its operating subsidiaries have not commenced Chapter 11 cases and will not be parties to the proceedings. Their operations are expected to continue in the ordinary course, with customers, suppliers and employees supported during the restructuring.

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