Case | HBS Case Collection | February 1997 (Revised March 2016)

Stone Container Corporation (A)

by W. Carl Kester and Kirk Goldman


In early 1993, Stone Container was heavily burdened by debt following a series of highly leveraged acquisitions. A prolonged depression in paper prices necessitated the development of a comprehensive financial plan to relieve the financial pressures on Stone. Among the alternatives to be considered are straight debt, convertible debt, and equity.

Keywords: Leveraged Buyouts; Borrowing and Debt; Capital Structure; Equity; Price; Strategic Planning;


Kester, W. Carl, and Kirk Goldman. "Stone Container Corporation (A)." Harvard Business School Case 297-047, February 1997. (Revised March 2016.)