Wood pellet producer Enviva files for bankruptcy and plans to restructure

By JAMES POLLARD
Associated Press/Report for America

The largest industrial wood pellet supplier in the world has filed for Chapter 11 bankruptcy. Maryland-based Enviva said in its filing that it has some $2.6 billion in debt and plans to cut about half of it by restructuring its agreements with creditors. The announcement comes two months after Fitch Ratings downgraded Enviva’s default rating following a missed interest payment of $24.4 million. Enviva said its financial woes will impact the construction of a new plant planned for Mississippi. Environmental activists with the Dogwood Alliance cheered the bankruptcy filing, saying the company isn’t as environmentally friendly or transparent as it could be.