From the Orange County Register online:
“Smurfit-Stone Container Corp., the largest producer of cardboard box materials in North America, on Monday filed for Chapter 11 bankruptcy protection as it looks to restructure a heavy debt amid a global credit freeze…The company said it expects to continue operations during the bankruptcy process and has received commitments for up to $750 million in debtor-in-possession financing to fund continuing operations. Of that $750 million, some $350 million is new incremental financing, while the remainder represents replacement of existing credit.
Earlier this month, a report said Smurfit-Stone was actively exploring bankruptcy protection and had engaged a law firm and financial advisers with expertise in bankruptcy filings.
Analysts responded positively to the filing.
‘The main thing is that this was an expected event and overall being a Chapter 11, instead of a Chapter 7 filing, it is good for the company and good for the industry longer term,’ said Longbow Research analyst Joshua Zaret.”
Smurfit-Stone had a corrugated container facility in Fullerton, Orange County until last year, when it was sold. It is possible that some of the many Orange County bankruptcy attorneys that abound in the area were prospectively culled to represent Smurfit Stone in their case. We can only speculate about that, however, as the Orange County Register article does not disclose the name of the bankruptcy law firm retained for Smurfit’s bankruptcy case.
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