We are advising an ad hoc group of creditors in connection with the restructuring

Davis Polk is advising an ad hoc group of creditors in connection with the chapter 11 restructuring of Enviva Inc.  

On March 12, 2024, Enviva Inc. and certain of its subsidiaries (collectively, “Enviva”) filed voluntary chapter 11 petitions in the United States Bankruptcy Court for the Eastern District of Virginia. Shortly before the filing, the ad hoc group, which holds approximately 97% of Enviva’s prepetition senior notes, 45% of exempt facilities revenue bonds issued by the Mississippi Business Finance Corporation, 78% of exempt facilities revenue bonds issued by the Industrial Development Authority of Sumter County, Florida, and 72% of Enviva’s prepetition senior secured credit facility, executed a restructuring support agreement with Enviva. The restructuring support agreement provides for a comprehensive restructuring of Enviva’s capital structure, including the reduction of Enviva’s debt by approximately $1 billion.  

Certain members of the ad hoc group are providing and backstopping a $500 million debtor-in-possession (DIP) financing to Enviva. The DIP financing was approved on an interim basis at Enviva’s “first day” hearing on March 14, 2024, along with other first-day relief.  

Enviva is the world’s largest producer of industrial wood pellets, a renewable and sustainable energy source produced by aggregating a natural resource – wood fiber – and processing it into a transportable form. Enviva owns and operates 10 industrial-scale wood pellet production plants with annual production of approximately five million metric tons in in Virginia, North Carolina, South Carolina, Georgia, Florida and Mississippi, and is constructing its 11th plant in Epes, Alabama. Enviva sells most of its wood pellets through long-term, take-or-pay off-take contracts with customers located primarily in the United Kingdom, the European Union and Japan.  

The Davis Polk restructuring team includes partners Damian S. Schaible and David Schiff and associates Joseph W. Brown, Hailey W. Klabo and James Nirappel. The finance team includes partner Christian Fischer and associates Alexander K.B. Shimamura and Carly (Yoona) Cha. Counsel Robert (Bodie) Stewart is providing capital markets advice. Partner Patrick E. Sigmon is providing tax advice. The litigation team includes partner Elliot Moskowitz. Members of the Davis Polk team are based in the New York office.

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