After several years of litigation, several tobacco companies have been sentenced to pay several billion Canadian dollars to tens of thousands of tobacco victims. If the 1er last March the Quebec Court of Appeal upheld the decision of the Superior Court, today tobacco companies are trying to protect themselves from creditors.
Imperial Tobacco Canada, the largest tobacco company in Canada, which manufactures the brands Du Maurier, John Player, Pall Mall and Marlboro, becomes the second major player in the industry to be placed under the protection of the Companies' Creditors Arrangement Act (CCAA). Last Friday, JTI-Macdonald opened the ball by announcing that he was granted protection under the CCAA.
Tobacco companies believe they have no choice but to protect themselves from their creditors after the Quebec Court of Appeal upheld a decision of the Quebec Superior Court on March 1er. By virtue of this decision, Imperial Tobacco, Rothmans Benson & Hedges et JTI-Macdonald must pay a maximum of 13,6 billion Canadian dollars to some 100 000 victims of smoking.
The portion of this sum that Imperial Tobacco will have to pay is 9,2 billion.
«This protection will allow the Company to continue its operations in the normal course of business and thereby generate the cash flow required to pay its employees, suppliers and the various levels of government", Said Imperial Tobacco in a statement announcing his bankruptcy Tuesday night.
Imperial Tobacco said it has paid about 3,8 $ billions in taxes to the various governments in 2018.
«In seeking protection under the CCAA, the Company will also seek to resolve all tobacco-related litigation in Canada through an efficient and court-supervised process."Continued the company.
In the aftermath of the Court of Appeal's decision, cigarette manufacturers announced their intention to continue their legal battle right up to the Supreme Court of Canada. The tobacco giants believe that their customers are fully aware of the risks they face while smoking, so they should not be held responsible for their health problems.
«Consumers and Canadian governments have known about the risks associated with smoking for decades, and the Company has always operated and sold its legal products within the regulatory framework dictated by governments.Said Imperial Tobacco Canada in a statement.
source : Tvanouvelles.ca/