Smurfit-Stone Sinks on Bankruptcy Talk

Shares of Smurfit-Stone Container (SSCC Quote) plunged after a report that the company is exploring the possibility of a bankruptcy filing.

The stock is trading at about 6 cents a share after closing Wednesday at 36 cents. Chicago-based Smurfit-Stone told lenders it could file for bankruptcy as it suffers weakening sales and a shortage of cash, The Wall Street Journal reported, citing people familiar with the matter.

Smurfit-Stone, which is one of the nation's biggest makers of cardboard boxes, is largely dependent on retail sales to drive demand for the packaging it makes for consumer goods.

The company reported in December that it expects "significantly lower" earnings for the fourth quarter because demand had weakened dramatically. At the end of the third quarter, the company reported debt of $3.57 billion.