Exporter, but wonder how many other mills might be experiencing issues. https://www.wsj.com/articles/wood-pellet-maker-enviva-prepares-to-file-for-bankruptcy-c23395b0
I couldn't read the whole article but this part has me wondering. I'm no financial person or anything so maybe i just don't fully understand. How's a bondholder, investor, going to offer more money to the company to claim bankruptcy?
Investors will loan more money if the new debt is senior to previous debt. For example, if a company is worth $10 M and has debt of $20 M then new investors would lend up to $ 10 M and get paid before any of the old $20 M debt gets paid. Allowing a company to continue to operate is generally desired so long as someone will invest more cash.
Seeing lignetics has bought up most of the mills marketing in the US, Doesn't see to have had much effect. Small mills are likely struggling. Hard to compete against big oil(propain included). And the latest surge, Mini splits seem to be the new thing. Many aren't bothering with the pellet stoves.
