Key Highlights

  • Mercer International (NASDAQ:MERC) said on November 2, 2026 it signed restructuring support agreements with holders of over 87% of its senior notes and plans a prepackaged Chapter 11 case in the Southern District of Texas.
  • Under the plan, about USD 1.1 billion of senior notes would be exchanged for equity, cutting senior note Debt by roughly 88%, while existing holders would receive about 8.5% of the new common stock.
  • Mercer did not pay the October 1, 2026 interest due on its 12.875% senior notes due 2028 and used a grace period that a supplemental indenture extended from 30 to 90 days on October 30, 2026.
  • Published market data lists the shares at USD 0.23, up 8.26% on 10.393 million shares; the snapshot date is unverified, and the listed 373.18% one-year EPS change conflicts with reported losses.

Chapter 11 Plan Leaves Existing Holders With a Sliver

The company release dated November 2, 2026 described restructuring support agreements with holders of over 87% of the senior notes. About USD 1.1 billion of notes would convert to equity, backed by a USD 400 million rights offering of new senior secured notes that certain noteholders have fully backstopped. The plan also includes USD 325 million of new convertible preferred stock, USD 150 million of takeback notes and up to USD 300 million of new revolving commitments. Mercer International (NASDAQ:MERC) expects confirmation about 45 days after filing and completion by the end of 2026, with operations continuing in the ordinary course.

Pulp Losses, a Missed Coupon and a Nasdaq Bid Notice

Mercer International (NASDAQ:MERC) makes pulp, lumber and mass timber products. For the second quarter of 2026, reported August 6, it posted Revenue of USD 460.3 million, a net loss of USD 76.0 million, or USD 1.13 per share, and operating EBITDA of negative USD 21.0 million, which included a USD 29.0 million non-cash inventory impairment. Cash was USD 78.8 million and shareholders' Equity was a Deficit of USD 98.0 million. Separately, Nasdaq sent a bid-price notice on July 9, 2026 after 30 Business days below USD 1.00; a 180-day period would run to about January 5, 2027 (own arithmetic from the notice date).

Penny Stock Mechanics: Cancelled Equity and Delisting Risk

Under the plan, existing common stock would be cancelled when it takes effect, and noteholders would receive about 91.5% of the new common stock against about 8.5% for current holders, before dilution from management incentives and preferred conversion. The company expects Nasdaq to notify it of delisting, after which the shares may move to an over-the-counter market. As a penny stock, the quote can swing on a few trades, spreads can be wide and a quoted gain can reverse. The screen's 373.18% EPS change could not be reconciled with reported losses and is not relied on.

Where Things Stand

Because the company says its debt load needs an exchange of notes for equity. Mercer International (NASDAQ:MERC) ran out of room on its capital structure: a missed October 1, 2026 interest payment, a USD 98.0 million Shareholder deficit at June 30 and continued pulp losses led to the November 2 agreement. Existing holders would keep about 8.5% of the new common stock if the plan is confirmed, and the company expects delisting from Nasdaq. Court confirmation, the Nasdaq notice and the grace period deadline are the dated items to watch.