Philip Morris Says Canadian Unit RBH Granted Creditor Protection

Philip Morris International Inc on Friday said its Canadian unit, Rothmans, Benson & Hedges Inc (RBH), was granted creditor protection, following a tobacco class action ruling in Quebec this month, Reuters reported. The company said it would deconsolidate RBH from its financial statements, and it cut its full-year 2019 diluted earnings per share forecast to at least $4.90 at prevailing exchange rates, from at least $5.28 in the forecast it made on March 4, shortly after the ruling in Quebec. The Court of Appeal of Quebec upheld the bulk of a 2015 decision that awarded about C$15 billion ($11.19 billion) to smokers in the Canadian province, a blow to several big tobacco companies, including RBH. Some observers criticized the creditor protection calling it an attempt to avoid making payments. Read more

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