Mercer International Inc. has commenced pre-packaged Chapter 11 proceedings in the United States to implement its previously announced debt restructuring, following an agreement supported by holders of more than 88% of its outstanding senior notes.

On November 9, 2026, Mercer and one of its non-operating subsidiaries filed voluntary Chapter 11 petitions with the US Bankruptcy Court for the Southern District of Texas, Houston Division. The company also submitted a pre-packaged plan of reorganization reflecting the terms of the restructuring support agreements announced on November 2.

Prior to filing, the company commenced solicitation of creditor votes on the reorganization plan. Completion of the restructuring remains subject to court confirmation, satisfaction or waiver of the plan's conditions and receipt of required regulatory approvals.

Under the proposed restructuring, Mercer expects to reduce its existing senior note debt by approximately 88%, eliminate more than US$100 million in annual cash interest payments and secure approximately US$400 million in new capital through a fully backstopped rights offering.

The company expects to complete the restructuring by the end of 2026.

Operating subsidiaries to continue normal operations

Mercer emphasized that its operating subsidiaries have not filed for Chapter 11 and will not be parties to the proceedings. Its pulp, solid wood and other operating businesses will continue operating in the ordinary course.

The company has also requested customary first-day relief from the court to support ongoing operations, including authorization to pay employees, vendors and customers. The proposed plan and related motions anticipate that general unsecured creditors, including trade creditors, will be paid in full in the ordinary course of business.

Mercer intends to fund its operations during the proceedings through available cash and cash generated by its businesses.

"This filing is a planned step toward completing our previously announced Recapitalization," said Juan Carlos Bueno, President and CEO of Mercer International. "The transaction is expected to significantly improve our capital structure and position Mercer for long-term success."

Bueno added that operations are continuing in the ordinary course and that the company remains focused on supporting employees and working with customers, suppliers and other business partners.

As previously announced, Mercer expects to receive notice from Nasdaq regarding the suspension of trading in its common shares. As of November 9, the shares continued to trade on Nasdaq under the ticker symbol MERC. If Nasdaq suspends trading, Mercer expects its shares may be quoted on an over-the-counter market, although there is no guarantee that an active market will exist.

Related coverage: Mercer International plans Chapter 11 filing as part of US$1.275 billion debt restructuring