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Smurfit-Stone

Smurfit-Stone Files for Bankruptcy

(Summary)

Smurfit-Stone Container Corp, one of the largest U.S. corrugated packaging makers, said on Monday that its U.S. and Canadian operations filed for Chapter 11 bankruptcy protection on Monday, Jan. 26.

The manufacturer had assets of $7.45 billion and debt of $5.58 billion as of Sept. 30. It employs more than 20,000 people worldwide and operates 162 manufacturing facilities, including paper mills and container plants. The company said it has received commitments for up to $750 million of debtor-in-possession financing pending court approval.

Smurfit-Stone fell 1.7 cents, or 29 percent, to 4.3 cents on Monday, Jan 26, in Nasdaq Stock Market trading. The shares plunged 98 percent last year.

According to Bloomberg, Smurfit-Stone has an $800 million revolving credit facility due November 2009. Moody’s also rates an estimated $3.5 billion in debt, and noted in December that the company may need to get waivers on some of its covenants to maintain access to the revolver.

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