MERCER INTERNATIONAL INC.

Mercer International Inc. announced a comprehensive recapitalization agreement, supported by over 87% of its Senior Noteholders and a majority of its shareholders. The agreement will significantly reduce its debt by exchanging approximately $1.1 billion of Senior Notes for equity, while also providing $400 million in new capital through a fully backstopped rights offering. Existing shareholders will retain a stake, receiving 8.5% of the new common stock and 3.5% of new convertible preferred stock. The company expects to operate in the ordinary course throughout the process, which will be effectuated via a prepackaged Chapter 11 plan of reorganization.

Mercer International Inc. reported a net loss of $75.98 million for Q2 2026 and $127.97 million for the first six months of 2026. The company raised substantial doubt about its ability to continue as a going concern, citing the January 2027 maturity of its Canadian credit facility and a probable covenant breach for its German facility, leading to its reclassification as current debt. Shareholders' equity has shifted to a deficit, and dividend payments have ceased, reflecting significant financial challenges.

Mercer International Inc. reported a Q2 2026 net loss of $76.0 million ($1.13 per share) and negative Operating EBITDA of $21.0 million, primarily due to rising European fiber costs and a $29.0 million non-cash inventory impairment. The company is implementing operational restructuring at its Torgau facility, including a workforce reduction of approximately 350 positions, and is actively evaluating strategic alternatives to address debt maturities and strengthen its capital structure.

Mercer Torgau GmbH & Co. KG, an indirectly wholly-owned subsidiary of Mercer International Inc., announced strategic actions to align its capacity and operational profile with current market conditions. These measures, driven by global economic uncertainty and increased costs, involve streamlining operations and adjusting its product portfolio. The company expects an initial reduction of approximately 100 contractor positions in July 2026, leading to an overall workforce reduction of about 350 positions, with completion anticipated by the second quarter of 2027.

Mercer International Inc. received a notice from Nasdaq on July 9, 2026, indicating non-compliance with the minimum bid price requirement of $1.00 per share. The company's common stock closed below $1.00 for 30 consecutive business days. Mercer has an initial 180-calendar-day period to regain compliance, which requires the stock to close at or above $1.00 for at least ten consecutive business days.

Mercer International Inc. announced that it will release its second-quarter results for the period ending June 30, 2026, on Thursday, August 6, 2026, after the market closes. Following the release, a conference call will be held on Friday, August 7, 2026, at 10:00 am ET, hosted by President & CEO Juan Carlos Bueno and CFO & Secretary Richard Short, to discuss the results. Interested parties can access the call via a live webcast or register for audio access to participate.

Mercer International Inc. announced an extension of the maintenance shutdown at its German pulp mill, Mercer Rosenthal. The shutdown, initially planned for two weeks, will now encompass the entire month of September 2026. This operational change was communicated via a press release on June 30, 2026.

Mercer International Inc. released its 2025 Sustainability Report, "Resilience in Action," detailing significant progress towards its 2030 sustainability goals. The company achieved an 11% reduction in Scope 1 GHG emissions intensity and generated 85% of its energy from renewable sources. Mercer emphasizes sustainability as a crucial investment for long-term competitiveness, highlighting initiatives like a carbon capture pilot project and e-mobility advancements.

Mercer International Inc. reported a significant increase in net loss for the first quarter of 2026, reaching $(51.996) million, compared to $(22.339) million in the prior year. Revenues declined to $489.304 million, and the company experienced an operating loss of $(32.892) million. The company also disclosed that its German subsidiaries did not meet a leverage ratio covenant but secured a waiver until September 30, 2026, and recorded $22.000 million in inventory impairment charges.

Mercer International's German subsidiaries entered into a Waiver and Consent Request Letter for their €370.1 million revolving credit facility. The lenders waived the financial covenant requiring a Leverage Ratio not to exceed 3.50:1.00 for the first three fiscal quarters of 2026. However, the agreement introduced more restrictive covenants, including capping facility utilization at €300 million, requiring US$30 million average liquidity, limiting capital expenditures to €60 million, and restricting distributions to the parent company until September 30, 2026. Additionally, the subsidiaries must provide additional periodic reporting and security over certain assets, and the interest rate margin was adjusted.