US Special Situations: Mercer International unveils comprehensive restructuring, $1.1bn senior notes to be equitised and $400mn of new money; implemented via prepack chapter 11

Mercer International comprehensive restructuring

US Special Situations: Mercer International unveils comprehensive restructuring, $1.1bn senior notes to be equitised and $400mn of new money; implemented via prepack chapter 11

Matt Dickinson: Senior Reporter

03 November 2026

Download the Full Report to gain insights on:
  • How the proposed recapitalization could reshape Mercer International’s balance sheet and future financial flexibility.
  • What the restructuring terms could mean for senior noteholders and existing shareholders.
  • Why new capital and revised financing arrangements are central to Mercer’s restructuring strategy.
  • How the prepackaged Chapter 11 process is designed to accelerate implementation while maintaining operations.
  • Which capital structure changes could influence liquidity, creditor recoveries and Mercer’s post emergence position.

Executive Summary

Mercer is pursuing a comprehensive recapitalization to strengthen its balance sheet. The restructuring aims to improve financial flexibility while preserving ongoing business operations.

Senior creditors play a central role in the proposed restructuring framework. Their participation will reshape Mercer’s ownership and post emergence capital structure.

New financing is intended to provide additional liquidity following the restructuring. Moreover, revised financing terms could help preserve cash for ongoing operations.

Existing shareholders will participate in the reorganized company under revised ownership arrangements. However, their position will change as the recapitalization takes effect.

Operations are expected to continue throughout the restructuring process. Customers, suppliers and employees should experience continuity while Mercer completes its recapitalization.

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