NEW YORK CITY (dpa-AFX) - Philip Morris said it has been informed by its deconsolidated Canadian affiliate, Rothmans, Benson & Hedges, that the court-appointed mediator and monitor in RBH's Companies' Creditors Arrangement Act proceeding filed a proposed plan of compromise and arrangement outlining certain terms of a resolution of tobacco product-related claims and litigation in Canada against RBH and its affiliates.
In March 2019, RBH obtained an initial order from the Ontario Superior Court of Justice granting, among other things, protection under the CCAA. As a result, under U.S. GAAP, PMI deconsolidated RBH from its financial statements and recorded its continuing investment in RBH as an equity security on its balance sheet at the fair value of $3.28 billion.
Jacek Olczak, CEO of PMI, said: 'Although important issues with the plan remain to be resolved, we are hopeful that this legal process will soon conclude, allowing RBH and its stakeholders to focus on the future.'
The court-appointed mediator and monitors also filed substantially similar proposed plans for Imperial Tobacco Canada and Imperial Tobacco Company, together, ITL, and JTI-Macdonald Corp. or JTIM. If the Plan is implemented, RBH, ITL, and JTIM would pay an aggregate amount of C$32.5 billion into trusts for the benefit of claimants.
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