Smurfit-Stone expects to emerge from bankruptcy protection on June 30
June 22, 2010 By Pulp & Paper Canada
Both U.S. and Canadian courts have confirmed the reorganization plans of Smurfit-Stone Container Corporation, …
Both U.S. and Canadian courts have confirmed the reorganization plans of Smurfit-Stone Container Corporation, clearing the way for the company to emerge from Chapter 11 in the U.S. and CCAA protection in Canada.
“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.”
“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,” continued Moore.
Smurfit-Stone’s plan of reorganization (POR) received overwhelming support from its creditor constituencies. On May 24, 2010, Smurfit-Stone announced that it reached a resolution with certain holders of the company’s preferred and common stock. The resolution provides that 4.5% of the new common stock of the reorganized company that the POR previously provided for distribution to unsecured creditors will now be distributed to the company’s current stockholders, with 2.25% being distributed pro rata to the holders of the company’s preferred stock and 2.25% being distributed pro rata to holders of the company’s common stock.
Smurfit-Stone Container is an integrated containerboard and corrugated packaging producer.
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