SSCC Granted Extension for Bankruptcy Reorganization Plan
Sep 16, 2009 Box Biz
Smurfit-Stone Container Corp. (SSCC), dually headquartered in Creve Coeur, Mo., and Chicago, was granted an extension until Jan. 21, for it and its subsidiaries to file a reorganization plan under the company’s Chapter 11 bankruptcy, reports the St. Louis Business Journal.
According to a regulatory filing by the company, the U.S. Bankruptcy Court in Wilmington, Del., on Sept. 9 approved a 120-day extension of the exclusive period in which Smurfit-Stone and its subsidiaries can file a reorganization plan with the court and approved solicitation of acceptance of a plan until March 23.
SSCC filed for Chapter 11 bankruptcy protection in January.
Smurfit-Stone Container Enterprises Inc. (SSCE) made a voluntary $250 million prepayment on a $400 million U.S. term loan under a Jan. 28 debtor-in-possession (DIP) credit agreement.
After the prepayment, there will be about $137 million outstanding under the U.S. term loan and $35 million under a Canadian term loan under the DIP credit agreement, and Smurfit-Stone Container Corp. will have available liquidity, including cash, of about $800 million, according to the filing.
The company reported that it continues to have zero borrowings outstanding under both the U.S. revolving credit facility and the Canadian revolving credit facility under the DIP credit agreement.
Smurfit-Stone Container Canada Inc. expects to close by mid-September on the sale of its Canadian timberlands, resulting in a prepayment of about $27 million of the Canadian term loan under the DIP credit agreement and leaving a balance of about $8 million under the facility, the company said in the filing.
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