Cigarette firm seeks creditor protection
A Canadian cigarette manufacturer is seeking Chapter 11-style creditor protection from a £596m government tax claim over alleged tobacco smuggling.
The company, JTI-Macdonald, said it could face bankruptcy as a result of the tax claim, which was lodged last week.
It is seeking protection under Canada’s Companies’ Creditors Arrangement Act in a move aimed at protecting 500 jobs.
The Quebec government is demanding the back taxes on profits made in the 1990s, which it claims were generated from contraband trade.
A preliminary hearing is due to take place next April in Ontario, the BBC Online reported.
JTI sells well know brands like Camel, Salem and Winston.