Smurfit-Stone reorganization begins

The confirmation hearing for approval of the reorganization of Smurfit-Stone Container Corp. began on schedule yesterday and will continue next week, with closing arguments tentatively set for April 26.

Valuation will be a key topic at the confirmation hearing. Opponents of the plan include shareholders who contend the valuation of the reorganized company is too low.

The Chapter 11 petition in January 2009 by the Chicago-based company listed assets of $7.45 billion and debt totaling $5.58 billion as of Sept. 30, 2008. Debt included $1.2 billion under secured revolving credit and term loan agreements, five issues of unsecured notes totaling $2.28 billion, $388 million under an accounts receivable securitization facility and $284 million owing on tax-exempt bonds.

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