Smurfit-Stone Container Corp. ("Smurfit"), the $7.5 billion paper-based packaging manufacturer, filed for bankruptcy in the Delaware Bankruptcy Court on Monday, January 26, 2009. Smurfit is one of the world’s largest manufacturers of container board and corrugated containers used to ship, store and display products. According to Smurfit’s Affidavit in support of its bankruptcy motions, Smurfit’s bankruptcy was the result of an "unprecedented decline in demand" for the company’s products, as well as a drop in prices due to increased competition and volatility in the pulp and paper industry. Further, recent changes in the capital markets reduced the company’s prospects for refinancing its debt outside of bankruptcy.
Continue Reading Smurfit-Stone Container Files Bankruptcy and Immediately Seeks to Continue Customer Programs and Implement Critical Vendor Program