 Smurfit-Stone Container Corp. Savings Plan Stock Fund Information |
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This web site contains information for participants and beneficiaries of the:
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Smurfit-Stone Container Corporation Savings Plan |
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St. Laurent Paperboard Hourly Savings Plan |
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Jefferson Smurfit Corporation Hourly Savings Plan |
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Smurfit-Stone Puerto Rico, Inc. Savings Plan for Salaried Puerto Rican Employees |
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Smurfit-Stone Container Corporation Hourly Savings Plan |
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Fiduciary Counselors was retained by the Administrative Committee for the Smurfit-Stone Container Corporation Retirement Plans, the Plans’ administrator, to determine whether the stock of Smurfit-Stone Container Corporation (“SSCC”) is a prudent investment in the Savings Plans and whether continuing to hold it is in the best interest of Plan participants. The Department of Labor and various courts have indicated that plan fiduciaries have an obligation to determine whether it is no longer prudent to hold company stock in the face of imminent bankruptcy. Making that determination is our responsibility. Because a bankruptcy filing by SSCC appeared to be imminent, Fiduciary Counselors determined that it was no longer prudent for the Plans to hold such a large position in SSCC Stock. We therefore directed the Plan recordkeeper to begin selling the SSCC Stock in the Plans. About half of the SSCC Stock in the Plans was sold before SSCC filed for bankruptcy on January 26. |
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| On December 1, 2009, Smurfit-Stone Container Corporation filed its proposed plan of reorganization with the Bankruptcy Court for the District of Delaware. Under Smurfit-Stone’s proposed plan of reorganization, all of the existing equity securities of Smurfit- Stone would be cancelled and existing shareholders of Smurfit-Stone stock would receive no distribution on account of their shares.
On December 10, 2009, the Bankruptcy Court denied a motion by Caspian Capital Advisors (“Caspian”) requesting the appointment an Equity Committee to represent the interests of the shareholders. Caspian had presented evidence at the hearing that a reorganized Smurfit-Stone has sufficient value to cover all debt obligations and leave significant value for equity interests (i.e., stock) but the judge’s opinion pointed out that Smurfit-Stone had presented evidence challenging Caspian’s contentions and estimating that the company was not worth enough to allow shareholders to get a recovery in the bankruptcy. Since the Bankruptcy Court has denied the motion to appoint an Equity Committee, it is highly likely that shareholders, particularly holders of common stock like the Plans, will receive nothing in the reorganization. Even if there was value available for equity, that value would first be applied to the preferred stockholders. Only if the preferred stock received a full recovery, would common shareholders, like the Plans, be eligible to receive anything. |
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 Fiduciary Counselors December 11, 2009 Letter |
If you require the Adobe Acrobat Reader, please click on "get Adobe Reader" |  |
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| Fiduciary Counselors February 3, 2009 Letter |
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| Fiduciary Counselors January 20, 2009 Letter |
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| QUESTIONS | |||||||||||||||||
| If you have questions about Smurfit-Stone's restructuring, please click here. | |||||||||||||||||
| If you have questions about actions that Fiduciary Counselors has taken: Please contact us by e-mail at Smurfit-Stone@FiduciaryCounselors.com. |
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| If you have questions about your Plan and its investment options: Please contact T. Rowe Price at 1-800-223-4055 or visit your Plan on the internet at rps.troweprice.com. |
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