Tobacco company opposes proposed $32.5-billion settlement with provinces, smokers: court document

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JTI-Macdonald Corp. has filed a document with an Ontario court indicating it does not support the proposal due to ‘critical outstanding issues’

One of three major tobacco companies involved in years of negotiations with creditors says it opposes the proposed multi-billion-dollar settlement announced in the case earlier this month.

The proposal would see the three companies – JTI-Macdonald Corp., Rothmans, Benson & Hedges and Imperial Tobacco Canada Ltd. – pay $24-billion to provinces and territories and more than $4-billion to tens of thousands of Quebec smokers and their heirs. In a separate court filing, Rothmans, Benson & Hedges said it has no issue with setting a date for the creditors’ vote but reserves the right to object to the proposal at a later stage in the process.

The company added it is “committed to resolving the issue in a timely manner to avoid the risk of substantial objections at the sanction hearing as well as the potential for further complications and delay.” A Quebec Superior Court judge first ordered the three companies to pay about $15-billion in two class-action lawsuits involving smokers in the province who took up the habit between 1950 and 1998 and either fell ill or were addicted, or their heirs.

 

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