Smurfit-Stone Chapter 11 Plan Accepted

Fernandina Beach's Smurfit-Stone Paper mill dodged the unemployment bullet as company re-emerges from bankruptcy

Smurfit-Stone resurfaces from Bankruptcy

Chicago headquartered Packaging and Paper recycling giant Smurfit-Stone won confirmation in court yesterday of its Chapter 11 Restructuring Plan in a settlement that gives existing common and preferred shareholders 4.5% of the reorganized company while the remaining 95.5% of a new Smurfit-Stone goes to unsecured creditors.
The court’s approval swaps $2 billion in unsecured debts on the company’s books into equity in the new Smurfit-Stone.

While the recession played havoc with some of the company’s production facilities and factories in Montana and Michigan had to close doors, the Fernandina Beach facility was spared and now takes a geographical pole position in the company’s new lease on life.

Many plant closings in the industry during the recession have now resulted in a constant elevated pricing for the company’s products and as a result the company is now poised for a brighter future with additionally improving global market conditions and only $1.8 billion in debt on the balance sheet.

The court’s approval of the Chapter 11 restructuring plan clears the way for a June 30 exit from bankruptcy.
Smurfit-Stone said it is also in talks with the concerned local officials from cities in Montana and Michigan about new uses for the closed plants in their communities and will report to the court in July about the results.

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