Smurfit-Stone Container Corporation, the world’s leading producer of cardboard containers, yesterday announced in release that it has filed voluntary petitions for reorganization under Chapter 11, thus confirming last week press reports.
The Canadian subsidiaries will also file to reorganize under the Companies’ Creditors Arrangement Act (CCAA).
Smurfit-Stone plans to use this process to restructure its debt, resulting in a capital structure more suited to support its long-term growth and profitability. “The Company’s normal day-to-day operations will continue without interruption,” Smurfit-Stone said in a release.
"The acceleration of the unprecedented global economic recession has weakened demand for packaging, and the frozen credit markets have prevented an out-of-court refinancing of our capital structure. While this is not the outcome we anticipated, we are taking this action to become a more financially healthy company,” Patrick J. Moore, chairman and CEO commented.
All operations outside of the U.S. and Canada are excluded from this process and none of Smurfit-Stone’s subsidiaries or operations outside of the U.S. and Canada commenced Chapter 11, CCAA or similar proceedings, the company added.
