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| Saturday, July 31, 2010 |
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Smurfit-Stone to emerge from bankruptcy
Published December 2, 2009
Smurfit-Stone Container Corporation announced Tuesday that it has filed plans with the United States Bankruptcy Court for the District of Delaware with the intent of the company, with headquarters in Creve Coeur, Mo. and Chicago, Ill., emerging from Chapter 11 protection in Spring 2010.
The company operates a plant in Stevenson. It employs approximately 400 people.
“The filing of our Plan of Reorganization and Disclosure Statement is an important step toward Smurfit-Stone’s successful emergence from the reorganization process,” Patrick J. Moore, chairman and CEO of the corporation, said in a prepared statement. “Our employees, customers, suppliers and other supporters have been instrumental in our ability to reach this important milestone. We remain focused on tackling the many challenges that remain ahead.”
The company began bankruptcy proceedings on Jan. 26, 2009 when it filed voluntary petitions for reorganization in both the U.S. and Canada.
The plan includes each of the company’s subsidiaries. Those in Canada are parties to the Companies’ Creditors Arrangement Act proceedings in that country.
In its announcement the company said it had prepaid approximately $43 million on its U.S. term loan under its Debtor in Possession credit facility. It also expects to prepay some $7 million left outstanding on its Canadian term loan by the end of the year.
SSCC and its subsidiary, Smurfit-Stone Container Enterprises, Inc. will merge under the plan and become the reorganized company, which will be governed by a board of directors including Moore and Steven J. Klinger, the current president and chief operating officer. The Official Committee of Unsecured Creditors, in consultation with the debtors, will choose independent directors.
The plan calls for the company’s existing secured debt to be fully repaid with cash, new debt instruments or a combination. Unsecured debt and claims against SSCE, Inc. would be exchanged for common stock of the reorganized Smurfit-Stone with holders of unsecured claims of less than or equal to $10,000 to receive full payment in cash. The company expects that its common stock will be traded on either the New York Stock Exchange or the NASDAQ market.
The company said its plan includes all of the “existing equity securities of Smurfit-Stone would be cancelled and existing shareholders of Smurfit-Stone common and preferred stock would receive no distribution on account of their shares.” The reorganized company and newly formed Canadian subsidiary will assume all of the existing obligations under the qualified defined pension benefits and the collective bargaining agreements in both countries.
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