Enviva, Largest Wood Pellet Producer, Declares Bankruptcy Amid Debt Crisis

The company plans to restructure after failing to manage over $2.6 billion in debt, aiming to cut about $1 billion through agreements with creditors.

Enviva, the world's largest supplier of industrial wood pellets, has filed for Chapter 11 bankruptcy protection.
The Maryland-based company's debts exceed $2.6 billion, with significant amounts owed to a Delaware bank, a German energy company, and through bonds from Mississippi and Alabama.
The bankruptcy filing follows a downgrade by Fitch Ratings due to a missed interest payment of $24.4 million.
Enviva aims to continue construction at its Alabama plant while pausing development in Mississippi as part of its restructuring efforts.
Environmental activists, including the Dogwood Alliance, view the bankruptcy as a consequence of Enviva's 'greenwashing tactics' and call for a shift away from the wood pellet industry.