Tobacco giant opposes Canada’s proposed smoking settlement over ‘critical issues’
Global News
One of three major tobacco companies involved in years of negotiations with creditors says it opposes the proposed multi-billion-dollar settlement.
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.
JTI-Macdonald Corp. has filed a document with an Ontario court indicating it does not support the proposal due to “critical outstanding issues.”
The document was filed ahead of a hearing scheduled Thursday to set the next step for the proposed plan of arrangement presented on Oct. 17.
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.
Before it can be implemented, the proposed plan must be voted on by creditors, which include plaintiffs in two class-action lawsuits in Quebec as well as provincial governments seeking to recover smoking-related health costs. It must also be approved by the court.
Thursday’s hearing involves a motion to set a date for the creditors’ vote, which the court document says JTI-Macdonald also opposes.
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 proposal reached through mediation doesn’t specify each company’s share of the $32.5 billion global settlement, an issue that “must be resolved” in order to move forward, the company said.
