Mercer International opens bondholder talks after going-concern warning; Fitch affirms CCC
Mercer International reported a USD 76.0m net loss on USD 460.3m of revenue in the second quarter of 2026 and is in confidential talks with bondholders over a potential liability management transaction, after flagging going-concern risk in its 6 August 2026 10-Q. Fitch Ratings affirmed the pulp producer's long-term issuer default rating at CCC with a stable outlook on 1 October 2026, citing stable liquidity despite timber price volatility. Mercer is cutting 350 jobs at its Torgau site in stages through the second quarter of 2027 as part of a USD 100.0m savings drive targeted for year-end 2026.
Why this mattersA going-concern warning, liability management talks and an affirmed CCC rating point to balance-sheet stress that could reshape ownership and market pulp supply.
- Q2 2026 revenue was USD 460.3m, up 1.5 percent year on year, with a net loss of USD 76.0m
- Operating EBITDA was negative USD 21.0m, roughly flat with negative USD 20.9m a year earlier
- Mercer's 6 August 2026 10-Q carried a going-concern warning, with liquidity of USD 191.7m including USD 78.8m cash
- The company is in confidential talks with bondholders over a potential liability management transaction, reported 15 September 2026
- Mercer plans to cut 350 positions at its Torgau site in stages through Q2 2027 as part of a USD 100.0m year-end 2026 savings target
- Fitch Ratings affirmed Mercer's Long-Term Issuer Default Rating at CCC with a stable outlook on 1 October 2026, citing stable liquidity and operating performance