US corrugated giant Smurfit-Stone has said that it plans to come out of Chapter 11 bankruptcy protection in early spring next year after it filed plans for its financial restructuring.

The Chicago-based group, which has turnover of more than $6bn, yesterday said laid out plans to repay most of its debt by offering equity to creditors.

The company first filed for Chapter 11 protection in January 2009, blaming frozen debt markets for an inability to restructure its finances. Under Chapter 11, a bankrupt company can continue trading while it resolves its financial issues.

Patrick Moore, chairman and CEO, said, "The filing of our Plan of Reorganization and Disclosure Statement is an important step toward Smurfit-Stone's successful emergence from the reorganization process.

"Our employees, customers, suppliers and other supporters have been instrumental in our ability to reach this important milestone. We will remain focused on tackling the many challenges that remain ahead."

Key elements of the plan include:

- merging all the company's Canadian assets into a single company that will operate as a subsidiary of Smurfit Stone;
- cancelling all existing equity securities; shareholders of existing stock would recieve no recompense for their investment;
- repaying creditors owed less than $10,000 in cash;
- repaying creditors owed more than $10,000 by issuing them with shares in the newly reorganised company, which will be traded either on the New York Stock Exchange or NASDAQ
- Patrick Moore will continue as chief executive of the newly-reorganised business.

Smurfit-Stone said its total assets had a net book value of about $5.3bn and its total debt was about $6.6bn.

Following its filing for Chapter 11, Smurfit Stone was granted $750m credit under what is known as 'Debtor in Possession' facility in February 2009. This allowed it to continue trading during its period in Chapter 11.