Report: Smurfit-Stone may be near bankruptcy

Smurfit-Stone Container Corp., which recently invested millions in its Springfield operations, may be close to bankruptcy, The Wall Street Journal reports.

The paper-based packaging manufacturer and recycler has headquarters in both Creve Coeur and Chicago, and it has plants at 2705 W. Battlefield Road and 460 N. Belcrest Ave. in Springfield, where the company recently wrapped up $7 million in capital investment.

Smurfit-Stone has hired Chicago law firm Sidley Austin Brown & Wood as bankruptcy counsel, and a Chapter 11 filing could occur within two weeks, according to the report. The company has about $3.5 billion in outstanding debt.

In December, Smurfit-Stone said North American demand had deteriorated and export markets had weakened dramatically, which officials expected to result in "significantly lower" fourth-quarter earnings compared to the third quarter.