Enviva Bankruptcy Wipes Out Shareholders

By Ryan Dezember
The Wall Street Journal
October 11, 2024
Category: Business & Politics
Region: United States, US East

It’s official: shares of America’s largest wood-pellet exporter are worthless. The New York Stock Exchange said it would delist Enviva’s stock on October 22 and that shareholders would receive no recovery. The notice cements one of the most dramatic collapses of the green-energy investing boom. Enviva’s stock market value ballooned to nearly $6 billion in 2022 before a wrong-way bet on pellet prices bankrupted the firm. Enviva, which makes pellets of compressed sawdust for overseas power plants to burn instead of coal, said that it will not appeal the stock exchange’s action. Enviva originally proposed giving shareholders a 5% equity stake in a restructured company. In its latest plan to exit Chapter 11 bankruptcy protection, however, shareholders are wiped out and Enviva emerges as a private company. A court hearing to confirm the plan is scheduled for Nov. 13.

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