Smurfit-Stone Receives Court Approval for Critical First Day Motions
28 January 2009 - 9:38AM
PR Newswire (US)
CREVE COEUR, Mo. and CHICAGO, Jan. 27 /PRNewswire-FirstCall/ --
Smurfit- Stone today announced that the U.S. Bankruptcy Court in
Wilmington, Delaware has granted the relief the Company requested
in its "First Day Motions" filed in conjunction with its voluntary
filing for reorganization under Chapter 11 of the U.S. Bankruptcy
Code. (Logo:
http://www.newscom.com/cgi-bin/prnh/20070129/SMURFIT-STONELOGO) The
court issued a variety of orders on either a final or interim basis
that will ensure that Smurfit-Stone continues to operate in a
"business as usual" mode throughout the reorganization process. The
Company's Canadian subsidiaries have received similar relief under
the Companies' Creditors Arrangement Act (CCAA) from the Ontario
Superior Court of Justice. Smurfit-Stone has now received court
authorization to, among other things: -- Utilize up to $550 million
of the Company's new $750 million debtor-in- possession (DIP)
credit facility on an interim basis. As customary, a hearing at
which the Company will seek final court approval for the full
amount of the DIP facility and other First Day Motions has been
scheduled for February 23, 2009. -- Provide employee wages,
reimbursements, health care coverage, vacation, sick leave and
similar benefits without interruption; -- Honor customer
obligations; and, -- Ensure the continuation of the Company's cash
management systems and other business operations. Patrick J. Moore,
chairman and CEO, said, "The authorization we received from the
court is an important and positive first step in our reorganization
and allows us to operate in a business as usual mode. We are
focused on providing our customers with quality goods and services.
Smurfit-Stone intends to pay vendors in the ordinary course under
existing terms for all goods and services received after the filing
date. We are moving forward to restructure our debt and develop a
capital structure more suited to support our long-term growth and
profitability." Smurfit-Stone and its U.S. and Canadian
subsidiaries filed to reorganize under Chapter 11 on January 26,
2009, in the U.S. Bankruptcy Court in Wilmington, Delaware. The
case number is 09-10235. The Canadian subsidiaries also filed to
reorganize under the Companies' Creditors Arrangement Act (CCAA) in
the Ontario Superior Court of Justice in Canada. More information
about Smurfit-Stone's reorganization is available on the Company's
website at http://www.smurfit-stone.com/. Copies of the First Day
Motions and court orders are available at:
http://chapter11.epiqsystems.com/Smurfit. Employee, retiree,
customer and supplier inquires can be made at 877-264-9638. If
outside of the US 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
http://www.newscom.com/cgi-bin/prnh/20070129/SMURFIT-STONELOGO
http://photoarchive.ap.org/ DATASOURCE: Smurfit-Stone Container
Corporation CONTACT: Sue Neumann, +1-314-656-5691, or John
Haudrich, +1-314-656-5375, both of Smurfit-Stone Container
Corporation Web site: http://www.smurfit-stone.com/
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