Smurfit-Stone settles shareholder bankruptcy fight

Smurfit-Stone Container Corp. resolved a conflict with shareholders over its reorganization plan, which may allow the box and packaging maker to exit bankruptcy within weeks.

Common and preferred shareholders will split 4.5 percent of the new stock Smurfit plans to issue as part of its reorganization plan, the company said.

The agreement "is a major milestone for our company and positions us to emerge from bankruptcy in the coming weeks," company Chairman and Chief Executive Officer Patrick J. Moore said in a statement.

Smurfit, based in Chicago, had been battling shareholders over how much it will be worth when the company leaves bankruptcy. Shareholders had argued it was worth enough to give them a return and still pay off the company's debts.

The company filed bankruptcy in January, 2009, listing assets of $7.45 billion and debt of $5.58 billion. As part of its reorganization the company closed plants, fired workers and cut debt.

Revised PlanUnder the company's reorganization proposal, unsecured creditors would receive stock in return for canceling as much as $3.1 billion in debt. Smurfit will ask U.S. Bankruptcy Court Brendan Linehan Shannon to approve a revised version of that plan, Director of Communications and Public Affairs Lisa Esneault said in an interview today.The agreement resolves the objections of the shareholder groups Mariner Investment Group LLC, Senator Investment Group LP, P. Schoenfeld Asset Management, LP and Fir Tree, Inc., Smurfit said.Shareholder attorney Rachel Strickland did not return a call for comment.The case is Smurfit-Stone Container Corp., 09-10235, U.S. Bankruptcy Court, District of Delaware (Wilmington).