Canadian Tobacco Co. Seeks Restructuring After $11 Billion Ruling

The Canadian subsidiary of British American Tobacco PLC has become the second Canadian tobacco company to get restructuring protection in the wake of an $11 billion Quebec appeals court judgment, with the company saying it is under "existential threat" from tobacco suits, Law360 reported. On Tuesday, the Ontario Superior Court of Justice granted protection to Imperial Tobacco Canada Ltd. under the Companies' Creditors Arrangement Act, staying the collection of the more than $6.8 billion the company expects it will owe on the judgment. The court had granted restructuring protection to co-defendant JTI-Macdonald Corp. four days after the March 4 Quebec decision upholding a verdict against ITC, JTI and a third company in a pair of class action suits. Read more