Philip Morris Canada Unit in CCAA Protection -- Update
22 Marzo 2019 - 6:43PM
Noticias Dow Jones
By Josh Beckerman
Rothmans, Benson & Hedges Inc. (RBH.YY), a Canadian unit of
Philip Morris International Inc. (PM), has been granted protection
under the Companies' Creditors Arrangement Act.
The company said an initial court order "imposes a comprehensive
stay of litigation proceedings against RBH while allowing the
company to carry on its business in the ordinary course." The
company is authorized to pay employees, vendors and suppliers.
"The CCAA forum provides RBH with a promising opportunity to
resolve all the pending litigation we have faced for decades in
Canada," the company said.
Earlier this month, Philip Morris International reduced its
profit outlook for the year after tobacco companies lost a major
legal appeal in Canada on March 1. Late Friday, it revised
financial guidance to reflect the deconsolidation of the Canadian
business while under CCAA protection.
The exclusion of anticipated Rothmans, Benson & Hedges
earnings will have an estimated effect of about 28 cents a share,
and a one-time charge of about 10 cents a share is expected in the
first quarter.
Last week, British American Tobacco PLC (BATS.LN) unit Imperial
Tobacco Canada Ltd. started CCAA proceedings and also filed for
chapter 15 protection in the U.S.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
March 22, 2019 20:28 ET (00:28 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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