Smurfit-Stone files for Chapter 11
January 26, 2009 By Pulp & Paper Canada
Smurfit-Stone Container Corp. and its U.S. and Canadian subsidiaries filed petitions for reorganization under Chapt…
Smurfit-Stone Container Corp. and its U.S. and Canadian subsidiaries filed petitions for reorganization under Chapter 11 on Monday in a Wilmington, Del. Bankruptcy Court.
According to an article on Bloomberg.com, the company listed $5.6 billion in consolidated debt and $7.5 billion in consolidated assets as of Sept. 30, 2008. The article also stated 24 affiliates sought court protection.
In a company press release, Smurfit-Stone’s chairman and chief executive officer, Patrick Moore, was quoted as saying the low demand for packaging spurred by the global economic recession and frozen credit markets were behind the move.
According to the article, Smurfit-Stone will continue to operate normally while it moves to reorganize its debt, a decision New York-based Longbow Research analyst Joshua Zaret deemed better than liquidation, which could “have been messy with the company probably being run for cash,” he was quoted as saying.
Smurfit-Stone – North America’s second largest corrugated packaging producer – employs about 22,000 people in the United States, Canada, Mexico and Asia. According to the company, their operations outside Canada and the United States are excluded from the bankruptcy process.
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