Smurfit-Stone Clears Ch. 7 Bid By Noteholders

Law360, New York (March 31, 2010, 4:42 PM EDT) -- Creditors of a Smurfit-Stone Container Corp. financing unit have failed to convert the subsidiary’s bankruptcy case to a Chapter 7 liquidation and must instead fight the confirmation of a plan that obliterates $200 million in noteholder claims.

Judge Brendan Linehan Shannon of the U.S. Bankruptcy Court for the District of Delaware dealt a heavy blow to Aurelius Capital Management LP and Columbus Hill Capital Management LP, finding the confirmation process the best way to address objections from the fund managers, which hold more than 60 percent...
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