Smurfit-Stone Container Corp. (Nasdaq: SSCC), one of the world´s largest recyclers of paper is considering bankruptcy court protection, according to a report in the Wall Street Journal.
The report, which cited unidentified sources, said the company is considering the move due to decreased sales and cash problems.
Recycling companies have struggled across the board in the last two quarters as demand has plummeted due to economic slow down and lowered commodity prices.
Following the WSJ report, shares for Smurfit-sTone fell by 30 cents to just 6 cents per share on Jan. 15 on the report.
Smurfit-Stone handles more than 7 million tons of recyclables each year, mostly recovered fiber. The recycled paper is either used to make new packaging products by the company or sold to third-party customers.
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