Sec Form 4 Filing - Credit Distressed Blue Line Master Fund, Ltd. @ MERCER INTERNATIONAL INC. - 2010-04-09

FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person Credit Distressed Blue Line Master Fund, Ltd. 2. Issuer Name and Ticker or Trading Symbol MERCER INTERNATIONAL INC. [ MERC] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director X __ 10% Owner _____ Officer (give title below) _____ Other (specify below) (Last) (First) (Middle) C/O INTERNATIONAL FUND SERVICES (IRELAND, THIRD FL, BISHOP'S SQUARE, REDMOND'S HIL 3. Date of Earliest Transaction (MM/DD/YY) 04/09/2010 (Street) DUBLIN 2, L200000 4. If Amendment, Date Original Filed (MM/DD/YY) 6. Individual or Joint/Group Filing (Check Applicable Line) _____ Form filed by One Reporting Person __ X __ Form filed by More than One Reporting Person (City) (State) (Zip)

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned 1.Title of Security (Instr. 3) 2. Transaction Date (MM/DD/YY) 2A. Deemed Execution Date, if any (MM/DD/YY) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities) 1. Title of Derivative Security (Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (MM/DD/YY) 3A. Deemed Execution Date, if any (MM/DD/YY) 4. Transaction Code (Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5) 6. Date Exercisable and Expiration Date (MM/DD/YY) 7. Title and Amount of Underlying Securities (Instr. 3 and 4) 8. Price of Derivative Security (Instr. 5) 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4) Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares 8.5% Convertible Notes due 2012 ( 6 ) 04/09/2010 S 250,000 ( 5 ) 01/15/2012 Common Stock, $1.00 par value per share 75,758 ( 6 ) $ 177.5 6,262,123 D ( 1 ) ( 2 ) ( 3 ) ( 4 ) ( 7 ) 8.5% Convertible Notes due 2012 ( 6 ) 04/12/2010 S 125,000 ( 5 ) 01/15/2012 Common Stock, $1.00 par value per share 37,879 ( 6 ) $ 179.25 6,137,123 D ( 1 ) ( 2 ) ( 3 ) ( 4 ) ( 7 ) 8.5% Convertible Notes due 2012 ( 6 ) 04/14/2010 S 575,000 ( 5 ) 01/15/2012 Common Stock, $1.00 par value per share 174,242 ( 6 ) $ 175.72 5,562,123 D ( 1 ) ( 2 ) ( 3 ) ( 4 ) ( 7 ) 8.5% Convertible Notes due 2012 ( 6 ) 04/15/2010 S 2,000,000 ( 5 ) 01/15/2012 Common Stock, $1.00 par value per share 606,060 ( 6 ) $ 177.96 3,562,123 D ( 1 ) ( 2 ) ( 3 ) ( 4 ) ( 7 )

Reporting Owners Reporting Owner Name / Address Relationships Director 10% Owner Officer Other Credit Distressed Blue Line Master Fund, Ltd. C/O INTERNATIONAL FUND SERVICES (IRELAND THIRD FL, BISHOP'S SQUARE, REDMOND'S HIL DUBLIN 2, L200000 X HARBINGER CAPITAL PARTNERS II LP 450 PARK AVENUE, 30TH FLOOR NEW YORK, NY10022 X HARBINGER CAPITAL PARTNERS II GP LLC 450 PARK AVENUE, 30TH FLOOR NEW YORK, NY10022 X FALCONE PHILIP 450 PARK AVENUE, 30TH FLOOR NEW YORK, NY10022 X Signatures CREDIT DISTRESSED BLUE LINE MASTER FUND, LTD. BY: HARBINGER CAPITAL PARTNERS II LP BY: HARBINGER CAPITAL PARTNERS II GP LLC /s/ Philip Falcone 04/15/2010 Signature of Reporting Person Date HARBINGER CAPITAL PARTNERS II LP BY: HARBINGER CAPITAL PARTNERS II GP LLC /s/ Philip Falcone 04/15/2010 Signature of Reporting Person Date HARBINGER CAPITAL PARTNERS II GP LLC /s/ Philip Falcone 04/15/2010 Signature of Reporting Person Date PHILIP FALCONE /s/ Philip Falcone 04/15/2010 Signature of Reporting Person Date

Explanation of Responses:

( 1 )These 8.5% Convertible Notes due 2012 ("Convertible Notes"), convertible into shares of the issuer's common stock, par value $1.00 per share ("Common Stock" or the "Shares"), are held for the account of Credit Distressed Blue Line Master Fund, Ltd. (the "Blue Line Fund"), which is a Reporting Person. ( 2 )These Convertible Notes may be deemed to be indirectly beneficially owned by Harbinger Capital Partners II LP ("HCP II") which serves as the investment manager to the Blue Line Fund; Harbinger Capital Partners II GP LLC ("HCP II GP") which serves as the general partner of HCP II; and Mr. Falcone who serves as the managing member of HCP II GP and the portfolio manager of the Blue Line Fund. In such capacity, Mr. Falcone may be deemed to have beneficial ownership over the Convertible Notes held for the account of the Blue Line Fund. ( 3 )These Convertible Notes constitute approximately 2.88% of the total number of Shares outstanding. Reporting Persons hold approximately 1,079,394 Shares of the issuer, consisting of Shares that the Reporting Persons may be deemed to own upon the conversion of the Convertible Notes as per Rule 13d-3(d)(1)(i). In addition, Mr. Falcone is deemed to be the beneficial owner of 2,228,194 Shares held for the account of the Harbinger Capital Partners Master Fund I, Ltd., which, together with the Convertible Notes held for the account of the Blue Line Fund, constitute approximately 8.81% of the total number of Shares outstanding. ( 4 )Based upon information provided by the Issuer in its recently-filed annual report on Form 10-K, there were 36,451,161 Shares outstanding as of February 24, 2010. Pursuant to Rule 13d-3(d)(1)(i). 1,079,394 Shares which are entitled to be obtained upon the conversion of the Convertible Notes have been added to the Issuer's number of Shares outstanding, therefore totaling 37,530,555 as the number of Shares outstanding. ( 5 )The Convertible Notes are immediately convertible into Shares. ( 6 )The conversion ratio of the Convertible Notes is 303.0303 Shares per $1,000 principal amount of Convertible Notes (equal to a conversion price of approximately $3.30 per Share). ( 7 )Each of the Reporting Persons may be deemed to be a beneficial owner of the Convertible Notes held for the account of the Blue Line Fund for purposes of Rule 16a-1(a)(1) under the Securities Exchange Act of 1934 (the "Exchange Act"). HCP II, HCP II GP and Mr. Falcone disclaim beneficial ownership within the meaning of Rule 16a-1(a)(2) under the Exchange Act in the Convertible Notes held for the account of the Blue Line Fund except to the extent, if any, of their pecuniary interest therein.

Remarks: This Form 4 is also being filed to check the box indicating that the Reporting Persons are no longer subject to Section 16.

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).

** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).

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