Smurfit-Stone Container looks to access cash collateral beyond Jan. 28

By Caroline Salls

Pittsburgh, Dec. 23 - Smurfit-Stone Container Corp. requested court approval to continue using cash collateral beyond the Jan. 28 maturity date of its debtor-in-possession financing, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company said it has decided not to exercise its option to extend the DIP financing beyond Jan. 28 because it has a significant cash reserve that can be used to meet its operating, working capital and capital expenditure needs.

However, the cash collateral use is scheduled to expire on the DIP facility maturity date.

A hearing is scheduled for Jan. 14.

Smurfit-Stone, a Chicago-based manufacturer of paperboard and paper-based packaging, filed for bankruptcy on Jan. 26, 2009. Its Chapter 11 case number is 09-10235.

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