Close X
Thursday, October 31, 2024
ADVT 
National

Creditors to vote on proposed $32.5B tobacco settlement in December

Darpan News Desk The Canadian Press, 31 Oct, 2024 12:26 PM
  • Creditors to vote on proposed $32.5B tobacco settlement in December

Creditors of three major tobacco companies will get the chance to weigh in on a proposed multi-billion-dollar settlement in December.

An Ontario court has approved a motion that would see representatives for the creditors, which include provincial governments and plaintiffs in two Quebec class-action lawsuits, review and vote on the proposal on Dec. 12.

One of the companies, JTI-Macdonald Corp., had urged the court to hold off on approving the motion so the proposed plan could be amended before it's presented to creditors.

The company said it opposed the proposed plan of arrangement, calling it "unworkable" in its current form.

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 representatives for the creditors and then be approved by the court.

Ontario Superior Court Chief Justice Geoffrey Morawetz did not give reasons for his decision to approve the motion Thursday, but repeatedly suggested during the hearing that discussions over any outstanding issues could continue before and even after the creditors' meeting.

Several of the other parties argued Thursday that JTI-Macdonald Corp.'s concerns should be raised and addressed later in the process.

Rothmans, Benson & Hedges and Imperial Tobacco said they had no issue with setting a date for the creditors' meeting but reserved the right to object to the proposal at a later stage in the process, including when it is presented for the court's approval.

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" to move forward, Rothmans, Benson & Hedges said in a court document filed ahead of Thursday's hearing.

"RBH has not agreed to the proposed plan with the allocation issue unresolved," the company said in the document.

The company added it is "committed to resolving the issue in a timely manner to avoid the risk of substantial objections at the sanction hearing as well as the potential for further complications and delay."

Whether the companies need to support the plan for it to take effect remains in dispute, with some parties arguing the court could simply impose the settlement.

Other payments laid out in the proposal include more than $2.5 billion for smokers in other provinces and territories who were diagnosed with smoking-related illnesses over a four-year period, and more than $1 billion for a foundation to help detect and prevent tobacco-related diseases.

The proposed settlement comes after more than five years of negotiations as part of a corporate restructuring process that was triggered by a decades-long legal battle.

A Quebec Superior Court judge first ordered the three companies to pay about $15 billion in two class-action lawsuits involving smokers in the province who took up the habit between 1950 and 1998 and either fell ill or were addicted, or their heirs.

The landmark decision was upheld by the province's top court in 2019, prompting the companies to seek creditor protection in Ontario. 

The Ontario court put all legal proceedings against the companies, including lawsuits filed by provincial governments, on hold as the parties negotiated a global settlement. 

The stay of proceedings was initially set to expire after a few months, but has been renewed about a dozen times. It has now been extended to Jan. 31, 2025.

MORE National ARTICLES

Crucial B.C. election recounts won't start until Sunday afternoon

Crucial B.C. election recounts won't start until Sunday afternoon
Voting officials say recounts in two ridings that could determine the outcome of British Columbia's election won't start until Sunday afternoon — and it won't be until Monday before the makeup of the legislature is finalized. The updated timeline provided by Elections BC says results of the Surrey City Centre recount will be posted on its website on Sunday when it is complete, while the outcome from Juan De Fuca—Malahat will be posted when it is finished the next day.

Crucial B.C. election recounts won't start until Sunday afternoon

Joly at Paris summit on Lebanon as Canadian donation-matching goal falling short

Joly at Paris summit on Lebanon as Canadian donation-matching goal falling short
France hosted dozens of countries at the summit on Thursday, which it said had raised US$1 billion in pledges for Lebanon. A fifth of that is for the country's military while the rest is targeted at humanitarian aid.

Joly at Paris summit on Lebanon as Canadian donation-matching goal falling short

More rain in B.C. forecast, although 'nothing' compared to atmospheric river

More rain in B.C. forecast, although 'nothing' compared to atmospheric river
The District of North Vancouver is getting ready for another bout of rain after an atmospheric river weather system drenched B.C.'s south coast last weekend, triggering a mudslide and localized flooding that killed at least three people. The North Shore mountains could see another 75 millimetres of rain this weekend, and Lisa Muri, a councillor with the district, says staff are preparing by cleaning up culverts and placing sandbags throughout the community.

More rain in B.C. forecast, although 'nothing' compared to atmospheric river

Facts about the B.C. Greens who could be kingmakers in the legislature

Facts about the B.C. Greens who could be kingmakers in the legislature
Two Green Party legislators could hold the balance of power in British Columbia after Saturday's provincial election gave neither the NDP nor the B.C. Conservatives a majority of seats after the initial count. Both Green members are new to provincial politics, although leader Sonia Furstenau will continue to lead the party after she lost re-election when she switched ridings to Victoria-Beacon Hill. 

Facts about the B.C. Greens who could be kingmakers in the legislature

Coroner says there's been a sharp spike in females dying from illicit drugs in B.C.

Coroner says there's been a sharp spike in females dying from illicit drugs in B.C.
Illicit drug deaths are down slightly in British Columbia from the same period last year, but the coroners service says females are dying at a much higher rate.  The service says in a statement that 26 per cent of the 1,749 toxicity deaths so far this year were women or girls, and the rate of death among females is up 60 per cent from four years ago.

Coroner says there's been a sharp spike in females dying from illicit drugs in B.C.

Trudeau says he will remain prime minister despite caucus revolt

Trudeau says he will remain prime minister despite caucus revolt
Prime Minister Justin Trudeau says he has no intention of stepping down as the leader of the Liberal party by next week. A letter signed by two dozen Liberal MPs asking Trudeau to step down was presented to the prime minister Wednesday at a tense caucus meeting in Ottawa.

Trudeau says he will remain prime minister despite caucus revolt