Enviva, a leading producer of industrial wood pellets, has successfully emerged from Chapter 11 bankruptcy with a significantly improved financial position, equitizing over $1 billion in debt. The U.S. Bankruptcy Court for the Eastern District of Virginia approved the company's Plan of Reorganization on November 14, 2024, following strong support from key stakeholders. With its reorganization complete, Enviva is now positioned to focus on long-term growth, operational consistency, and fulfilling its role as a leading renewable energy partner.
To support its post-emergence operations, Enviva secured $250 million in new equity financing through an Equity Rights Offering. This funding strengthens the company’s liquidity and finances the completion of its 11th production plant in Epes, Alabama, slated to produce one million metric tons of wood pellets annually starting in May 2025. The restructuring also provided access to a delayed draw term loan and established an exit loan facility, further stabilizing Enviva's financial base. The company now operates with no near-term debt maturities.
Enviva’s leadership has undergone significant changes. Glenn Nunziata, formerly Interim CEO and CFO, has been appointed Chief Executive Officer, while James Geraghty, previously Executive Vice President of Finance, now serves as Chief Financial Officer. Speaking on the reorganization, Nunziata emphasized that the reduced debt burden and enhanced liquidity position the company to reliably serve customers and rebuild trust within the communities it operates.
The company's governance also saw a transition, as it now operates as a private entity under the leadership of a new Board of Managers, including representatives from major stakeholders such as American Industrial Partners (AIP), Keyframe Capital Partners, and Ares Management. Jan Trnka-Amrhein of AIP highlighted Enviva’s robust production assets and logistics capabilities as a foundation for market expansion and reliability in meeting growing biomass demand.
In 2023, Enviva reported a net loss of $686 million, a substantial increase from the $168 million loss recorded in 2022. Revenue rose to $1.18 billion from $1.09 billion in the prior year, and wood pellet production grew from 4.7 million metric tons to 5.0 million metric tons. However, higher costs, including goodwill impairments and asset-related expenses, outweighed these improvements and significantly contributed to the larger loss. In October 2024, Enviva’s stock was delisted from the New York Stock Exchange.
