Pulp maker Mercer is weighing possible Chapter 11 bankruptcy

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Photo by iStockphotoCanadian pulp producer Mercer International Inc. is laying the groundwork for a potential Chapter 11 bankruptcy filing, according to people familiar with the matter.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountMercer, which has struggled with rising fiber and energy costs as well as persistent cash burn, could seek court protection in the coming weeks, said the people, who asked not to be named because the information is private. The company would likely file in Texas, though no final decision has been made and plans could still change, they added.This advertisement has not loaded yet, but your article continues below.Creditors are expected to take control of the company if it files for bankruptcy, the people said. Opportunistic credit investor Redwood Capital Management had been acquiring Mercer’s distressed debt, becoming one of its largest creditors and part of a majority group of bondholders, Bloomberg previously reported.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againThe company and Redwood did not respond to requests for comment, while a representative for company adviser Houlihan Lokey declined to comment.Mercer had about US$1.3 billion of long-term debt as of June 30. Its shares closed Wednesday at about 21 cents, down from US$1.98 at the end of 2025.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.