Enviva evaluating alternatives to alleviate adverse liquidity transactions

Enviva said in this morning’s earnings release that it is evaluating a number of potential alternatives to maintain its compliance with the covenants and restrictions under the senior secured credit facility and to alleviate the adverse liquidity impact of the Q4 2022 transactions, including: Negotiating with the existing customer to restructure or renegotiate the terms of the Q4 2022 transactions, or to seek other alternatives to mitigate the potential impact of the Q4 2022 transactions on the company’s liquidity; Renegotiating the terms of existing customer contracts to improve Enviva’s profitability and to better protect against future inflation and other cost risks; Continuing to advance cost-reduction and productivity initiatives designed to improve the financial and operating performance of the company’s fully contracted assets; Engaging with Lazard, Alvarez & Marsal, and Vinson & Elkins in a “comprehensive review of alternatives to enhance Enviva’s capital structure (including debt maturities in 2026), augment liquidity, address contractual liabilities, and increase long-term profitability.”