Smurfit-Stone Files for Reorganization in U.S. and Canada



    - Expects a significant improvement in capital structure to support
future growth and profitability
    

    - Operations to continue as usual at all facilities

    - $750 million in new financing provides ample liquidity

    
    CREVE COEUR, Mo. and CHICAGO, Jan. 26 /PRNewswire-FirstCall/ --
Smurfit-Stone Container Corporation (Nasdaq:   SSCC) today announced that it and
its U.S. and Canadian subsidiaries have filed voluntary petitions for
reorganization under Chapter 11 in the U.S. Bankruptcy Court in Wilmington,
Delaware. The Canadian subsidiaries will also file to reorganize under the
Companies' Creditors Arrangement Act (CCAA) in the Ontario Superior Court of
Justice in Canada.
    

    (Logo: http://www.newscom.com/cgi-bin/prnh/20070129/SMURFIT-STONELOGO)

    
    The Company 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 remains completely focused on serving its
customers.
    

    
    The Company also announced that, pending Court approval, it has received
commitments for up to $750 million in debtor-in-possession (DIP) financing to
fund continuing operations. Of this total, $350 million consists of new
incremental funding; approximately $400 million represents replacement of
existing Accounts Receivable Securitization facilities both in the U.S. and
Canada. The DIP financing will enable the Company to continue to satisfy
customary obligations associated with ongoing operations of its business,
including payment of employee wages and benefits in the ordinary course, and
payment of post-petition obligations to vendors under existing terms.
    

    
    Patrick J. Moore, chairman and CEO, said, "Over the past decade, we built
one of North America's premier containerboard and packaging companies. But,
our financial performance has not reflected the full potential of our earnings
power due to higher cost operations and burdensome debt levels dating back to
the original formation of the company. As a result of our three-year
transformation program, we have been focused on improving our operating
performance and our operations are now well invested and far more cost
effective.
    

    
    "Yet, 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.
    

    
    "This combination of a modern, cost-effective operating platform and a
reorganized capital structure through Chapter 11 will represent a new
beginning for Smurfit-Stone.  I am confident that we will emerge a much
stronger company structured for future growth and greater profitability."
    

    
    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.
    

    
    Smurfit-Stone has filed a variety of customary first day motions with the
Court in Delaware and will seek an initial order in the Canadian proceedings,
which will help enable it to continue to conduct business as usual while it
completes its restructuring.
    

    
    Smurfit-Stone's legal advisor is Sidley Austin LLP; its Canadian counsel
is Stikeman Elliott LLP; and its financial advisor is Lazard.
    

    
    More information about Smurfit-Stone's reorganization is available on the
Company's website at www.smurfit-stone.com. Employee, retiree, customer and
supplier inquiries can be made at 877-264-9638.  If outside of the U.S. and
Canada, inquiries can be made at 503-597-7694.
    

    
    Smurfit-Stone Container Corporation is one of the industry's leading
integrated containerboard and corrugated packaging producers and is one of the
world's largest paper recyclers. The company is a member of the Sustainable
Forestry Initiative(R), and the Chicago Climate Exchange. Smurfit-Stone
generated revenue of $7.4 billion in 2007, has led the industry in safety
every year since 2001, and conducts its business in compliance with the
environmental, health, and safety principles of the American Forest & Paper
Association
    



    




For further information:

For further information: Sue Neumann, +1-314-656-5691, John Haudrich,
+1-314-656-5375, both for Smurfit-Stone Container Corporation; or Michael
Freitag|Andrea Calise, Kekst and Company, +1-212-521-4800 Web Site:
http://www.smurfit-stone.com

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SMURFIT-STONE CONTAINER CORPORATION

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