BATs Subsidiary Granted Creditor Protection in Canada, Looks to Settle Litigation
13 March 2019 - 7:21PM
Dow Jones News
By Oliver Griffin
British American Tobacco PLC (BATS.LN) on Wednesday said that
its subsidiary Imperial Tobacco Canada Ltd. has been granted
protection under the Companies' Creditors Arrangement Act.
Imperial Tobacco Canada filed for an initial order from the
Ontario Superior Court of Justice after the Quebec Court of Appeal
ruled that the tobacco industry in Canada was jointly and severally
liable in a multi-billion-dollar class-action suit.
The initial order has the effect of staying all current tobacco
litigation against Imperial Tobacco and other group companies in
Canada, British American Tobacco said.
British American Tobacco said if Imperial Tobacco hadn't
obtained court protection, it could have been liable to pay all of
the damages under the Quebec Court of Appeal judgement.
The company said Imperial Tobacco will now look to resolve the
judgement, as well as all other tobacco litigation in Canada under
a court-supervised process while trading as normal.
Write to Oliver Griffin at oliver.griffin@dowjones.com;
@OliGGriffin
(END) Dow Jones Newswires
March 13, 2019 04:06 ET (08:06 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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