Bankruptcy May Be in Horizon for Smurfit Stone

By: WJHG-TV
By: WJHG-TV

The owners of Panama City’s paper mill may be filing for bankruptcy.

It’s only been a few weeks since management temporarily shut-down the Smurfit Stone Paper Mill -- citing the poor economy -- now, reports are emerging that the company may be filing for Chapter 11 Bankruptcy.

The Wall Street Journal reports Smurfit-Stone has hired a Bankruptcy Counsel and financial advisers to line up about a $750 million in debtor-in-possession financing.

Reports say a Chapter 11 filing may be coming in the next two weeks.

The paper mill closed it doors November 22, 2008 to about 450 employees.

Workers headed back to the mill at the beginning of this month.

No one from Smurfit Stone would comment on the Wall Street reports or any speculation that it may be planning any type bankruptcy action.


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