Smurfit-Stone Emerging From Bankruptcy Protection
Corrugated packaging products giant Smurfit-Stone Container Corporation says it now expects to emerge from Chapter 11 bankruptcy protection in the U.S. on June 30, about six weeks after the company’s Canadian operations have fulfilled their fiscal obligations as negotiated under the country’s Companies’ Creditors Arrangement Act (CCCA) protection.
"With confirmation of the Plan of Reorganization, Smurfit-Stone is now on a path to emerge from our financial restructuring on June 30," says Smurfit-Stone president and chief executive Patrick Moore.
“Upon consummation of the restructuring plan, we will have successfully reduced our debt and realigned our capital structure in a way that dramatically improves the Company’s prospects for long-term growth and profitability.”
Hit hard by the global financial crisis two Years ago, Smurfit-Stone filed for Chapter 11 and CCCA protection on January 26, 2009, embarking on a sweeping company-wide restructuring and cost cutting program, resulting in severe layoffs and several plant closures.
According to Moore, the sever belt-tightening has paid off for the Chicago headquartered company that ranks as one of the world’s largest integrated containerboard and corrugated packaging producers, with 2009 revenues of US$5.57 billion.
"We are pleased to have been able to reach agreement with our creditors and stockholders on a plan that enables us to continue to drive value for our stakeholders and help our customers grow their businesses," states Moore.
"I particularly want to thank our employees, whose hard work and enduring dedication have allowed us to continue meeting and exceeding our customers’ expectations throughout this process and whose efforts contributed greatly to positioning us for a successful emergence."