Smurfit-Stone Reaches Resolution with Stockholders

Smurfit-Stone Container Corp. has reached a resolution with a number of shareholder groups that would allow the company to emerge from bankruptcy by this summer.

The deal would result in Smurf-Stone distributing 4.5 percent of the stock in the new company to holders of prebankruptcy shares of both preferred and common stock.

The company filed for Chapter 11 bankruptcy protection last January due to the high costs of raw material, as well as challenging credit markets.

"Reaching this agreement with our stockholders is a major milestone for our company and positions us to emerge from bankruptcy in the coming weeks," says Patrick Moore, chairman and CEO of Smurfit-Stone. "Our focus has been, and continues to be, driving value for our stakeholders and helping our customers grow their businesses."

The resolution resolves all of the objections to the confirmation of the Chapter 11 plan raised by the Holders and as a result, the company anticipates an exit from Chapter 11 by early this summer.