Creditors Bash Smurfit-Stone Disclosure Statement

Law360, New York (January 22, 2010, 6:19 PM EST) -- With a hearing for Smurfit-Stone Container Enterprises Inc.’s disclosure statement drawing near, creditors have unleashed a spate of objections denouncing the bankrupt packaging maker’s latest reorganization plan as unacceptably vague and rigged to benefit corporate insiders.

A motley group consisting of insurers, noteholders and indenture trustees, among other creditors, urged Judge Brendan L. Shannon of the U.S. Bankruptcy Court for the District of Delaware to reject the Smurfit’s disclosure statement as the plan it describes is obscure and otherwise “patently unconfirmable.”

The debtors updated their joint...
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