We advised an ad hoc group of creditors in connection with Enviva’s chapter 11 proceedings

Davis Polk advised an ad hoc group of creditors in connection with the successful restructuring of Enviva Inc. and certain of its affiliates. In addition, members of the ad hoc group backstopped a $500 million debtor-in-possession (DIP) financing and a $250 million new-money equity financing. Davis Polk also separately advised certain members of the ad hoc group in providing a new $1.05 billion secured credit facility to support the restructuring.

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 on March 12, 2024. Shortly before the filing, the ad hoc group, which at that time held over $1.5 billion across the company’s debt capital structure, executed a restructuring support agreement with Enviva and agreed to provide the DIP financing.

On November 13, 2024, the Bankruptcy Court confirmed Enviva’s plan of reorganization, approving the comprehensive restructuring backed by the ad hoc group. As a result of the plan, creditors will own substantially all of reorganized Enviva’s equity of reorganization, and Enviva eliminated approximately $1 billion of debt from its balance sheet.  

Enviva, LLC is a leading producer of industrial wood pellets, a renewable energy source produced by aggregating a natural resource, wood fiber, and processing it into a transportable form, wood pellets. Enviva owns and operates plants throughout the Southeastern United States and exports its wood pellets to customers in global markets.

The Davis Polk restructuring team included partners Damian S. Schaible, David Schiff and Christian Fischer and associates Joseph W. Brown, Alexander K.B. Shimamura, James Nirappel and Mckenzie K. Whalen. Partner Paul S. Scrivano and associate Sarah Catherine Chouinard provided corporate advice. Partner Patrick E. Sigmon provided tax advice. Partner Elliot Moskowitz provided litigation advice. Partner Adam Kaminsky provided executive compensation advice. Partner Yasin Keshvargar provided capital markets advice. Members of the Davis Polk team are based in the New York, Northern California and Washington DC offices.

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