Creditors allege Enviva’s former executives concealed massive, risky wood-pellet trades to trigger bonus payouts, leading to the company’s bankruptcy. The trades, made during a market surge after Russia’s Ukraine invasion, backfired and wiped out nearly $6 billion in market value. Shareholders got nothing, and bondholders recovered only pennies.

A lawsuit filed by investors and suppliers claims five top executives, including former CEOs John Keppler and Thomas Meth, hid the trades from the board. Law firm Baker Botts found solid legal grounds for claims after a seven-month investigation. Enviva emerged from bankruptcy in December 2024 under new ownership, but creditors are unlikely to recover close to the $2 billion sought.

The case highlights how executive incentive structures contributed to one of the decade’s worst commodity trades, despite Enviva’s earlier status as a green-energy leader.