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Imperial Tobacco Canada announced the completion of settlement litigation, warning that the black market for tobacco could impact compensation funds

Sep.01.2025
Imperial Tobacco Canada announced the completion of settlement litigation, warning that the black market for tobacco could impact compensation funds
Imperial Tobacco Canada announced the end of all related litigation as the court-approved settlement plan took effect. The company warned that Canada’s illegal tobacco market, now over 30% of total sales and growing, threatens the compensation plan’s sustainability. Legal sales revenues are crucial for funding annual payments to claimants.

Key Points:

 

·Exiting CCAA protection: Imperial Tobacco Canada officially exits CCAA protection as the court-approved settlement plan takes effect. 

·Illegal tobacco trade: The company emphasizes the seriousness of the issue of illegal tobacco trade in Canada, which accounts for over 30% of tobacco sales, and calls on the government to take action. 

·Key to success of the plan: Cracking down on illegal trade is crucial to ensuring the integrity of the court-approved CCAA solution.

 

 

2Firsts, September 1, 2025 - According to a newswire report on August 29, Imperial Tobacco Canada announced that the company has officially exited from the Companies' Creditors Arrangement Act (CCAA) protection. With the approved settlement and arrangement plan taking effect, the company's litigation proceedings have come to an end. The plan provides maximum compensation for claimants while ensuring stability for the company and its stakeholders.

 

Today is a crucial moment for Imperial Tobacco Canada as we have officially exited CCAA protection," said Eric Gagnon, Vice-President of Imperial Tobacco and Head of Corporate and Regulatory Affairs. "The settlement and arrangement plan is now in effect, providing maximum value for claimants and allowing Imperial Tobacco to move forward with confidence.

 

Imperial Tobacco emphasizes that the illegal trade of tobacco products in Canada is spiraling out of control and must be a top priority for all levels of government. The company estimates that the black market in Canada accounts for over 30% of all tobacco sales, a worrying figure that continues to rise.

 

These illegal tobacco products are being sold without age verification, health warnings, and directly benefiting organized crime. The illicit trade undermines public health goals, harms law-abiding small businesses, and threatens the stability of court-approved plans by shifting sales away from legal, regulated markets, providing funds for annual payments to claimants.

 

The illegal tobacco market is one of the biggest obstacles to ensuring claimants accelerate their compensation," Ganion added. "We are ready to work with all levels of government to shut down this dangerous underground industry. Every dime of illegal tobacco sales feeds organized crime, depriving Canadian communities, public health, and provinces benefiting from the program of much-needed funds. Combating illegal trade is crucial to protecting the integrity of the court-approved CCAA settlement.

 

References:
[1] Imperial Tobacco Canada Moves Forward as Court-Approved Plan of Arrangement Takes Effect
Also Read:
[1] U.S. Court Formally Approves Imperial Tobacco Canada Restructuring Plan Involving US$23.6 Billion Settlement
[2] Imperial Tobacco Canada: Ban on ZONNIC Nicotine Pouches in Convenience Stores Leads to Cigarette Sales Rebound, Calls for Restoring Multi-Channel Supply

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