Largest US Wood Pellet Maker Enviva Prepares Bankruptcy Filing: Report
Portfolio Pulse from Vandana Singh
Enviva Inc (NYSE:EVA), the largest U.S. wood pellet exporter, is reportedly preparing to file for bankruptcy due to significant losses from speculative commodity pricing. The company missed a $24 million interest payment and is in a 30-day grace period expiring soon. Bondholders may extend this period or finance the Chapter 11 process. Enviva's shares have dropped 99% over the past year after a failed strategy led to substantial losses. The company, which operates ten plants and six marine terminals, is facing doubts about its ongoing viability.
February 14, 2024 | 5:37 pm
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Enviva Inc is facing bankruptcy due to massive losses from speculative commodity pricing, with a 99% drop in share value over the past year.
Enviva's preparation for bankruptcy filing and the significant drop in share value directly impact investor confidence and the stock's short-term performance. The company's financial distress and potential restructuring under Chapter 11 will likely lead to further volatility and downward pressure on the stock price.
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