Smurfit-Stone Container gets court OK to tap credit
Bankruptcy judge approves $750 million to allow operation during reorganization.
PRESS RELEASE -- Converting Magazine, 2/23/2009 2:31:00 PM
CREVE COEUR, Mo. and CHICAGO, Feb. 23 -- Smurfit-Stone Container Corp. today announced that the U.S. Bankruptcy Court in Wilmington, Delaware, has granted final approval of its $750 million debtor-in-possession (DIP) credit facility, which provides the company with access to the full amount of the facility. The court had previously granted the company interim authority to access $550 million of the DIP facility. The court also granted final approval to various other interim orders that had been entered at the commencement of the bankruptcy case.
Patrick J. Moore, Chairman and Chief Executive Officer, said, "We believe that the DIP facility will provide the company with ample liquidity to operate throughout the restructuring process. We are pleased to have completed this initial phase of the process, and remain focused on providing our customers with an uninterrupted supply of quality goods and services, and strengthening our partnerships with our vendors. We are moving forward to restructure our debt and develop a capital structure more suited to support our long-term growth and profitability."
Smurfit-Stone and its U.S. and Canadian subsidiaries filed to reorganize under Chapter 11 on January 26, 2009, in the U.S. Bankruptcy Court in Wilmington, Delaware. The Canadian subsidiaries also filed to reorganize under the Companies' Creditors Arrangement Act (CCAA) in the Ontario Superior Court of Justice in Canada.
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