Packaging Post

"Bankruptcy Courts Allows Creditors to Vote for SSCC Plan"


A bankruptcy court has ruled that creditors can vote for Smurfit-Stone Container Corp. (SSCC)’s reorganization plan, a decision objected to by shareholders who believe that the packaging company is underestimating its value, Reuters reports.

Many of the creditors have indicated approval for the reorganization, but this could face a drawn-out challenge from shareholders.

Attorneys for two groups of shareholders have alleged a lack of information on how the company valued itself and the timeliness of its information.

Shareholders’ are concerned that Smurfit-Stone’s estimation of its value could lead to wrongly denying them a recovery.