According to the report, JTI-Macdonald filed for protection from its creditors on 8 March. The court extended protection in favour of JTI-Macdonald Corp. after the company argued that the damages award in the case of up to 1.77 billion Canadian dollars (EUR 1.1 billion) exceeded its capacity to pay, JTI said in a statement.
“JTI-MC filed for protection as it considers doing so to be the best possible option for JTI-MC.
It enables JTI-MC to carry on business in the ordinary course. JTI-MC is the only JT Group company that is party to these proceedings and the financial impact of JTI-MC’s protection under the CCAA is currently under review,” the company statement said.
The Canadian subsidiaries of BAT, Philip Morris and JTI were sentenced earlier this month to pay damages of about CAD 17 billion (EUR 11.24 billion) after losing their appeal to class actions by Quebec smokers.