Tobacco giants would pay out $32.5B to provinces, smokers in ‘historic’ proposed deal
Three tobacco giants would pay close to $25 billion to provinces and territories and more than $4 billion to tens of thousands of Quebec smokers and their loved ones as part of a newly proposed deal in a corporate restructuring process triggered by a long-running legal battle.
A proposed plan of arrangement developed through mediation was filed in an Ontario court Thursday after a prolonged five-year process.
The companies — JTI-Macdonald Corp., Rothmans, Benson & Hedges and Imperial Tobacco Canada Ltd. — sought creditor protection in Ontario in early 2019 after they lost an appeal in a landmark court battle in Quebec.
The Ontario court put all legal proceedings against the companies on hold as they tried to work out a deal with their creditors, which include the plaintiffs in two Quebec class-action lawsuits as well as provincial governments seeking to recover smoking-related health-care costs.