Mercer Bonds Sink as Pulp Firm Seeks to Strip Lender Protections

Posted by MarketsWire

Mercer International Inc.’s bonds slumped after it sought to ditch rules requiring equal treatment for all creditors — a move that would give the struggling pulp producer the power to pick and choose which lenders to favor in a restructuring.

1 replies

tomspark wrote:

yeah this is basically a company saying "we want the ability to screw some of you over if things go south" which, shockingly, makes people nervous about owning their bonds. the market's doing exactly what it should — pricing in the increased risk. hard to blame investors for bailing when management is openly trying to remove the guardrails that protect them.