Monday, January 26, 2009

Smurfit-Stone Files For Chapter 11

Smurfit Stone Container Corp, the largest manufacturer of containerboard and boxes in North America filed for Chapter 11 bankruptcy protection.  
This company operates 150 facilities in  North America.  Management sited the challenge of repayment of $3.5Billion in debt (nearly half the annual revenues of $7.5Billion).  The poor economy has hurt both demand for their products and created frozen credit markets to allow for restructuring its debt.  

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