Bankrupt Smurfit-Stone to pay $47 mil in bonuses

Smurfit-Stone Container Corp., the corrugated container and containerboard maker that entered Chapter 11 in January, was authorized by the bankruptcy judge yesterday to adopt a bonus program that could pay as much as $47 million to 3,700 executives and other workers.

The U.S. Trustee unsuccessfully objected. To read Bloomberg coverage, click here. The Chapter 11 petition by the Chicago-based company listed assets of $7.45 billion against debt totaling $5.58 billion as of Sept. 30.

Debt includes $1.2 billion under secured revolving credit and term loan agreements, five issues of unsecured notes totaling $2.275 billion, $388 million under an accounts receivable securitization facility and $284 million owed on tax- exempt bonds.

The case is In re Smurfit-Stone Container Corp., 09-10235, U.S. Bankruptcy Court, District of Delaware (Wilmington).