Mercer International files for Chapter 11 bankruptcy protection

BY Richard Summerfield

Canadian pulp manufacturer Mercer International Inc. has filed for Chapter 11 bankruptcy as part of a restructuring and recapitalisation deal that will slash its debt and bring in approximately $400m of new money.

The company, along with Mercer International (Texas) LLC, has entered a non-operating voluntary Chapter 11 prepackaged case in the US Bankruptcy Court for the Southern District of Texas. Completion of the recapitalisation is subject to customary conditions, including any requisite regulatory approvals, and the company is optimistic that it will be able to conclude this expedited Chapter 11 process by the end of 2026.

According to a statement announcing the recapitalisation deal, the agreement will see approximately $1.1bn of the company’s senior notes exchanged for equity, reducing existing senior note debt by approximately 88 percent, with minimal cash interest requirements over the first two years following emergence, and no bond maturities until 2031. The recapitalisation will eliminate approximately $96m of annual cash interest on the senior notes.

The company will also benefit from substantial new capital and liquidity, with $400m of new money being secured through a rights offering of new senior secured notes 100 percent backstopped by certain members of the ad hoc group of noteholders to provide significant liquidity to support Mercer’s operations post-emergence.

Going forward, existing shareholders will receive approximately 8.5 percent of the new common stock and 3.5 percent of the new convertible preferred stock of the reorganised company.

Mercer’s restructuring deal has support from holders of more than 87 percent of the outstanding principal amount of Mercer’s senior notes and a majority of the outstanding shares of its common stock.

According to Mercer, the company and its operating businesses will continue to operate in the ordinary course of business during the restructuring process. Its customers will continue to be served, vendors and unsecured claims will be paid in the ordinary course, and employee wages and benefits will continue without interruption

“This transaction is a decisive step forward for Mercer and is the result of constructive and arm’s-length negotiations between Mercer and key stakeholder groups,” said Juan Carlos Bueno, president and chief executive of Mercer. “With the support of the majority of our noteholders and shareholders, we are putting in place a much stronger balance sheet and the liquidity to navigate current pulp and lumber market and geopolitical conditions. Upon emergence, we will be better positioned to invest in, and grow, our business.

“This is a balance sheet recapitalization only. Our mills in Germany, Canada and the United States are operating as usual, and we expect to continue to meet our commitments to customers, suppliers and employees in the ordinary course,” he added.

Mr Bueno also thanked the company’s employees for their dedication and hard work, as well as its customers, suppliers, community partners, noteholders and shareholders for their continued support and confidence in Mercer’s future. He said this backing demonstrated faith in the company’s people, long-term strategy and portfolio of pulp, lumber and mass timber products, and expressed confidence that Mercer would complete the process efficiently and emerge as a stronger business.

News: Mercer International to file prepackaged Chapter 11, swap $1.1 billion of notes for equity

RiverStreet files for Chapter 11 bankruptcy

BY Fraser Tennant

RiverStreet, a telecommunications and broadband services provider based in Virginia, has filed for Chapter 11 bankruptcy protection to facilitate an asset purchase agreement (APA) with funds managed by Oaktree Capital Management. 

The bankruptcy filing encompasses 21 entities, including RiverStreet Communications, RiverStreet Networks, RiverStreet Wireless, and several regional telephone and communications companies.

The new ownership is expected to significantly strengthen RiverStreet’s financial foundation and provide additional resources to support its long-term success, allowing the company to continue to provide reliable telecommunications and broadband services to all its customers without interruption.

Additionally, RiverStreet is currently implementing a modified build plan that refocuses its operations on its existing customers and footprint. Under this plan, RiverStreet maintains its current networks and intends to finish new builds that are nearing completion.

At the same time, the company – which serves customers in more than 67 counties in three states, primarily in North Carolina and Virginia – intends to transition certain unfinished expansion projects to other qualified broadband providers.

“The APA with Oaktree and the actions we are taking today are intended to ensure that this mission continues for years to come,” said Eric Cramer, president and chief executive of RiverStreet. “The board of directors and management team carefully considered a range of options before making this decision.”

To support the company during the court-supervised proceedings, RiverStreet has appointed Stuart Kaufman as chief restructuring officer. Mr Kaufman is a senior managing director at Areté Partners, LLC with more than three decades of financial restructuring experience and deep financial and operational expertise.

“We are confident that this is the best path for RiverStreet and our key stakeholders, including our customers and the communities where we live and work,” he continued. “We look forward to completing this process and entering a new phase as a stronger rural broadband provider with new owners, substantially less debt, and greater financial flexibility.”

In connection with the court-supervised sale process, RiverStreet has received a commitment for approximately $20m in new financing from its existing lender, CoBank, ACB. Upon court approval, this new financing, together with cash generated from ongoing operations, will support the company’s operations throughout the Chapter 11 proceedings.

Evan Kramer, senior vice president at Oaktree, added: “We look forward to building on RiverStreet’s strengths while remaining true to its mission as a leading rural telecommunications and broadband provider.”

News: RiverStreet Communications: $480 Million Awarded, $188 Million Received

AirBaltic files for Chapter 11 bankruptcy

BY Fraser Tennant

Latvia’s airBaltic, and certain of its subsidiaries, has filed for Chapter 11 protection under Chapter 11 of the US Bankruptcy Code, as it seeks to restructure its debt and survive a deepening sector-wide crisis brought on by the Iran war.

Relief requested by the airline to continue operating normally throughout the Chapter 11 process has been granted approval by the US Bankruptcy Court for the Southern District of New York.

The court has also approved the company’s debtor in possession (DIP) financing on an interim basis, authorising airBaltic to immediately access an initial tranche of €140m of a previously agreed €350m financing facility.

The financing is committed in tranches, with further amounts available as the restructuring progresses, subject to the terms of the financing and further court approval where applicable.

With DIP financing approved, airBaltic will continue its financial reorganisation under the supervision of the US Court and discussions with creditors and other stakeholders, with the objective to establish a more sustainable capital structure and competitive cost base.

“The court’s decisions are an important first step in our financial reorganisation, allowing us to continue operating while moving forward with the restructuring,” said Erno Hildén, president and chief executive of airBaltic. “The approval of our DIP financing provides additional financial stability as we work to build a stronger and more sustainable airBaltic.”

Founded in 1995, airBaltic is the national airline of Latvia and the leading carrier in the Baltic States. The airline operates a modern and one of Europe’s youngest fleets of Airbus A220-300 aircraft. In 2025, airBaltic became the first European airline to introduce free high-speed SpaceX Starlink internet onboard its flights.

Flights and services are expected to continue without interruption throughout the Chapter 11 process. All flights will operate as scheduled, tickets and reservations remain valid, and passengers can continue to book and travel as usual.

“Our aim is to complete the process with a financially stronger airBaltic and a substantially reduced level of obligations that the company can sustainably manage over the long term,” said Andrejs Martinovs, chairman of the supervisory board of airBaltic. “We have a strong management team and experienced advisers with hands-on experience of implementing Chapter 11 processes.”

News: AirBaltic Has Filed For Chapter 11. Here’s What Happens Now

Restructure complete: West Marine emerges from Chapter 11

BY Fraser Tennant

Completing a comprehensive financial restructuring, marine retailer West Marine – together with its subsidiaries and affiliates – has successfully emerged from Chapter 11 bankruptcy protection.

Emerging with a strengthened financial foundation and clear path forward, West Marine emerges to begin a new chapter with a renewed commitment to provide top-quality marine parts, accessories and expert service to the boating community.

The Fort Lauderdale-based marine retailer filed for Chapter 11 in May 2026 citing a years-long accumulation of compounding pressures that ultimately left the company with approximately $21.5m in cash, $549.2m in outstanding debt and $55m in annual lease obligations it could no longer absorb.

In March and September 2023, the company attempted to address its balance sheet twice before filing, with two out of court restructurings equitiSing approximately $660m in debt and injecting hundreds of millions in new capital. Neither attempt, however, proved to be enough.

Having reduced its debt by more than $265m and obtained $10m in additional exit financing to bolster its business in its next phase, the company has pledged to continue to serve customers through approximately 100 retail locations, its online platform and the West Marine Pro business.

“Our emergence from Chapter 11 marks an important milestone for West Marine and the beginning of an exciting new chapter for our business,” said Paulee Day, chief executive of West Marine. “Throughout this process, we remained focused on what matters most: serving customers, supporting the boating community and preserving the legacy of a company that has been helping people enjoy time on the water for generations.”

Founded in 1968, West Marine has grown from a small rope business in California into the nation’s leading retailer of core marine parts and accessories for boating, fishing and sailing enthusiasts and marine industry service professionals. The company has approximately 100 brick and mortar stores and a strong online presence, serving first-time boaters to seasoned mariners and marine professionals.

Ms Day added: “Thanks to the support of our customers, vendors, partners and financial stakeholders, and the unwavering dedication of our crew members, we are emerging as a stronger company positioned to build on momentum and serve the boating community for years to come.”

News: West Marine emerges from Chapter 11 after cutting debt by $265 million

Sangamo Therapeutics files for Chapter 11 bankruptcy protection

BY Richard Summefield

On Tuesday, Sangamo Therapeutics, Inc., a genomic medicine company, announced it had filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the District of Delaware to facilitate a court-supervised reorganisation, which is expected to include the auction of substantially all of the company’s assets.

Simultaneously, the company also announced it had entered into two separate asset sale agreements, one with Eli Lilly for Sangamo’s capsid delivery platform, zinc finger platform, modular integrase (MINT) platform and the prion disease programme, ST-506, and another with Astellas Pharma Inc., for the company’s Fabry disease programme, isaralgagene civaparvovec (ST-920).

To underpin the sale process, Lilly and Astellas will each serve as stalking horse bidders for the sale of the assets contemplated by their respective agreements. A stalking horse asset sale agreement establishes a strong baseline offer and is intended to help maximise value for all stakeholders through the Chapter 11 auction process.

Although during the Chapter 11 proceedings the company said “substantially all” of its assets will be up for sale, the stalking horse bids do not include the clinical-stage ST-503 programme to treat chronic neuropathic pain, the giroctocogene fitelparvovec programme to treat hemophilia A, and Sangamo’s cell therapy and regulatory T cell (Treg) assets. Sangamo said these are expected to remain available to interested bidders at the auction.

To maintain operations during the restructuring, Sangamo has secured a commitment for debtor in possession financing from Northridge ATM and its affiliates. The company said the financing, which is subject to court approval, is expected to provide sufficient liquidity to fund operations, support the Chapter 11 process and meet post-petition obligations. Sangamo has filed motions with the US Bankruptcy Court for the District of Delaware seeking authorisation to continue normal business operations during the proceedings.

“Following a comprehensive review of available alternatives, we believe this process provides a clear framework to pursue value‑maximizing transactions,” said Sandy Macrae, chief executive of Sangamo. “Our priority is to execute a disciplined and efficient sale process while supporting all of our stakeholders. We are also pleased to have signed agreements with two large pharmaceutical companies to serve as stalking horse bidders in the process, underscoring the strategic interest in our assets.”

Sangamo reported a $31m net loss on revenue that fell 78 percent year over year to $1.4m from $6.4m. Sangamo said $5m of that decrease was due to Pfizer’s termination early last year of its collaboration with Sangamo to develop a hemophilia A gene therapy, giroctocogene fitelparvovec. The company is also laying off approximately 51 staffers, or around 40 percent of its total workforce, according to a filing with the Securities and Exchange Commission.

News: Sangamo Therapeutics Enters Into Asset Sale Agreements with Lilly and Astellas