Smurfit-Stone Files Plan, Eyes Ch. 11 Exit

Law360, New York (December 1, 2009, 3:24 PM EST) -- Bankrupt packaging maker Smurfit-Stone Container Corp. has filed a reorganization plan that would convert roughly $3 billion in unsecured debt into new equity, provide prepetition lenders with cash or new debt instruments, and leave current shareholders out in the cold.

Smurfit-Stone lodged the disclosure statement and reorganization plan Tuesday in the U.S. Bankruptcy Court for the District of Delaware, proposing to merge Smurfit-Stone and its major subsidiary Smurfit-Stone Container Enterprises Inc. in order to exit Chapter 11 protection this spring.

In addition to repaying about $1...
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