December 4, 2009
by Canadian Packaging Staff
The Smurfit-Stone Container Corporation has announced that the company and its subsidiaries and affiliates currently acting as debtors in possession under Chapter 11 of the United States Bankruptcy Code–including debtors that are Canadian subsidiaries and parties to the companies’ Creditors Arrangement Act (Canada)–have filed a joint plan of reorganization and plan of compromise and arrangement and disclosure statement with the U.S. Bankruptcy Court for the District of Delaware. With this filing, the company is aiming to emerge from Chapter 11 protection in early Spring 2010.
The company also announced that it has prepaid all of the approximately $43-million remaining outstanding of the U.S. term loan under its Debtor in Possession credit facility (the DIP), and expects to prepay the approximately $7-million remaining outstanding of the Canadian term loan under the DIP by the end of December 2009.
Smurfit-Stone expects to emerge from its financial restructuring with a significantly improved balance sheet and with substantially less debt. Under the proposed Plan of Reorganization (POR), substantially all of the unsecured debt of Smurfit-Stone Container Enterprises, Inc. will be converted to equity, resulting in a significant reduction of total long-term debt.
Patrick J. Moore, chairman and chief executive officer says, "The filing of our Plan of Reorganization and Disclosure Statement is an important step toward Smurfit-Stone’s successful emergence from the reorganization process. Our employees, customers, suppliers and other supporters have been instrumental in our ability to reach this important milestone. We will remain focused on tackling the many challenges that remain ahead."
More information about Smurfit-Stone’s reorganization is available on the Company’s website at www.smurfit-stone.com.