An announcement from Enviva (EVA) is now available.
Enviva Inc. has commenced a Chapter 11 restructuring process, aiming to operate normally during this period and minimize disruption. They plan to secure a $500 million debtor-in-possession financing to support business operations and complete construction projects. The company has also proposed procedures to preserve their net operating losses for tax benefits, which involves restrictions and notifications for substantial shareholders. This process, however, has caused an event of default on their debt obligations, which are now due immediately, although enforcement is stayed by the bankruptcy proceedings. Enviva’s recent press release and financial disclosures should be viewed with caution as they contain forward-looking statements that are subject to change.
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