Smurfit-Stone to Emerge from Bancruptcy on June 30
June 22, 2010 - Smurfit-Stone Container Corp. [yesterday] said that Judge Brendan Shannon of the U.S. Bankruptcy Court in Wilmington, Delaware, entered an order confirming the Joint Plan of Reorganization and Plan of Compromise and Arrangement filed by the company and each of its subsidiaries and affiliates currently acting as debtors in possession under Chapter 11 of the United States Bankruptcy Code, including those Debtors that are Canadian subsidiaries and parties to the Companies' Creditors Arrangement Act (Canada) proceeding.
The second-largest containerboard producer in North America said that the court approval of its reorganization plan, which follows similar action in Canada, clears the way for the company to emerge from Chapter 11 in the U.S. and CCAA protection in Canada by the end of the month.
"With confirmation of the Plan of Reorganization, Smurfit-Stone is now on a path to emerge from our financial restructuring on June 30," said Patrick J. Moore, chairman and CEO of Smurfit-Stone.
"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," Moore said.
According to a Reuters news story, Smurfit-Stone emerges from bankruptcy having shed around $3 billion in debt. The company, which had 2009 sales of $5.57 billion, projects net income to rise to $132.3 million by 2014 from $8.4 million last year.
"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," continued Mr. 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," he added
Smurfit-Stone still carries a pension shortfall of around $1 billion, according to court documents.
SOURCE: Smurfit-Stone Container Corp., and Reuters