Smurfit-Stone emerges from bankruptcy; stock to trade starting July 1

By Lisa Kerner

Charlotte, N.C., June 30 - Smurfit-Stone Container Corp. said it completed its financial restructuring and has officially emerged from Chapter 11.

The newly reorganized, publicly traded company will begin trading on the New York Stock Exchange under the symbol "SSCC" effective July 1, according to a Smurfit-Stone news release.

Smurfit-Stone's plan of reorganization was confirmed on June 21 and was recognized by a Canadian court order.

"We have successfully completed our financial restructuring in just 17 months, and we exit Chapter 11 as a well-positioned industry leader with a healthier balance sheet and improved cost structure," said chief executive officer Patrick J. Moore.

As previously reported, 4.5% of the new common stock of the reorganized company will be distributed pro rata to current stockholders, with 2.25% being distributed to the holders of the preferred stock and 2.25% being distributed to holders of the common stock.

Also under the plan:

• All of the company's existing secured debt will be fully repaid in cash;

• Substantially all of the existing unsecured debt and claims against Smurfit-Stone Container Enterprises, including all of the outstanding unsecured senior notes and bonds, will be exchanged for common stock of the reorganized Smurfit-Stone. However, these creditors were entitled to choose a cash-out option;

• The assets of the company's Canadian debtors will be sold to a newly formed Canadian subsidiary of Smurfit-Stone in exchange for the repayment of the secured debt obligations of the Canadian debtors and cash of the reorganized company for distribution to the Canadian debtors' unsecured creditors if they vote to accept the plan.

New board announced

The company also named a new board of directors that includes Moore, Smurfit-Stone president and chief operating officer Steven J. Klinger and Ralph F. Hake, who was appointed non-executive chairman.

Hake is the former chairman and CEO of Maytag Corp.

Other members of the board include Timothy J. Bernlohr, former president and CEO of RBX Industries, Inc.; Terrell K. Crews, former executive vice president and chief financial officer of Monsanto; Eugene I. Davis, chairman, CEO and chief restructuring officer for Pirinate Consulting Group, LLC; Michael E. Ducey, former president and CEO of Compass Minerals International, Inc.; Jonathan F. Foster, managing director, Current Capital LLC; Ernst A. Haberli, former president, commercial operations, international, Gillette Co.; Arthur W. Huge, former president and CEO of Menasha Corp.; and James J. O'Connor, former chairman and CEO of Unicom Corp. and the former Smurfit-Stone lead independent director.

Smurfit-Stone, a Chicago-based manufacturer of paperboard and paper-based packaging, filed for bankruptcy on Jan. 26, 2009. Its Chapter 11 case number is 09-10235.

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