Wood pellet maker Enviva files for bankruptcy

WILMINGTON, NC (WWAY) — A global company with a presence in the Cape Fear has filed for bankruptcy.

Enviva, a wood pellet export facility located at the Port of Wilmington, will continue operations as it begins voluntary Chapter 11 bankruptcy proceedings in the U.S. Bankruptcy Court for the Eastern District of Virginia.

According to a news release, Enviva is entering two restructuring agreements to reduce the company’s debt by $1 billion, strengthen liquidity and improve profits.

“We look forward to emerging from this process as a stronger company with a solid financial foundation and better positioned to be a leader in the future growth of the wood-based biomass industry. We appreciate the support of our lenders, our vendors, and our customers, and the tremendous efforts of our entire team as we continue to execute our transformation plan,” said Glenn Nunziata, Interim Chief Executive Officer and Chief Financial Officer.

The agreement will allow Enviva to complete construction on a plant in Alabama, but the release did not state what would become of the facility in Wilmington.

Enviva began exporting wood pellets from the Port of Wilmington in 2016.

The restructuring is targeted to be completed during the fourth quarter of 2024