Mercer International is pursuing a prepackaged Chapter 11 restructuring that would exchange senior note claims for new securities and raise up to $400 million of new liquidity. The debtors have requested a December 16, 2026 combined hearing on disclosure-statement approval and plan confirmation, along with authority to conduct a rights offering. Solicitation Procedures Motion Dkt. 15

Mercer International Inc. and its affiliate are pursuing a prepackaged Chapter 11 plan to reduce debt and raise new liquidity. Mercer filed its petition on November 9, 2026, and the court ordered the two cases jointly administered on November 10. Petition Dkt. 1 Joint Administration Order Dkt. 24

The forest-products group entered Chapter 11 after operating EBITDA fell to negative $22.2 million in 2025 and negative $13.1 million in the first half of 2026. CFO Richard Short said the company would lack sufficient liquidity to repay its Canadian asset-based loan and German revolving credit facility at maturity without a restructuring and might be unable to refinance or extend them on commercially viable terms. The debtor senior notes totaled approximately $1,275,000,000; Short reported an additional $367.8 million of secured debt at non-debtor affiliates. First Day Declaration Dkt. 6

The proposed plan would give senior noteholders subscription rights, $150 million in takeback secured notes, 91.5% of new common stock and 56.5% of new convertible preferred stock. Existing equity holders would receive 8.5% of the new common stock and 3.5% of the new preferred stock; general unsecured claims generally would be paid in full or otherwise left unimpaired. The debtors project that funded debt would decline from approximately $1.6 billion to approximately $700 million upon emergence. Plan Dkt. 13 Disclosure Statement Dkt. 14

The proposed rights offering would issue up to $420 million principal of new secured notes, including $20 million of original issue discount, for up to $400 million of new liquidity. The plan also contemplates a new asset-based facility with up to $300 million in commitments; the new-money notes amount may be reduced for facility borrowings at closing under specified conditions. These are proposed financing terms. Plan Dkt. 13 First Day Declaration Dkt. 6

The debtors report support agreements with holders of approximately 88.58% of senior note claims and 43.1% of existing equity interests. They have requested a December 10, 2026 voting deadline and a December 16 combined hearing on disclosure-statement adequacy and plan confirmation. The plan remains subject to confirmation and other conditions to effectiveness, including financing and required regulatory approvals. Disclosure Statement Dkt. 14 Solicitation Procedures Motion Dkt. 15 Plan Dkt. 13