The New York Stock Exchange said it would delist Enviva’s stock on 22 October and that shareholders would receive no recovery. Sources: The Wall Street Journal, Investing.com, Timberbiz
The notice cements one of the most dramatic collapses of the green energy investing boom. Enviva’s stock market value ballooned to nearly US$6 billion in 2022 before a wrong-way bet on pellet prices bankrupted the firm.
Enviva will be moved to the OTC market, following its voluntary petitions for reorganization under Chapter 11 of the United States Code.
Over-the-counter (OTC) markets are those in which participants trade directly, without a central exchange or other third party. OTC markets do not have physical locations.
As part of this process, Enviva has submitted an amended Chapter 11 reorganization plan, proposing to emerge as a private entity with current shareholders seeing their equity interests cancelled.
The company has also secured commitments for a financial restructuring plan, which includes a Backstop Commitment Agreement with equity commitment parties and a US$1 billion senior secured facility contingent upon exiting the Chapter 11 process.
Enviva has been flagged by the NYSE for non-compliance due to a delay in submitting its 2023 annual report, a delay linked to the company’s current bankruptcy proceedings. However, the NYSE has granted Enviva a six-month grace period to file the overdue report and regain compliance.
Enviva has also submitted monthly operating reports, providing a snapshot of the company’s financial status during the bankruptcy process. The company has announced extensions to several key milestones under its Restructuring Support Agreement, including the deadline for delivering a revised long-term business plan. These are the recent developments in Enviva’s ongoing journey, highlighting the complexity of its current financial situation.
