Imperial Tobacco Canada Ltd. secured protection Wednesday in New York bankruptcy court for its supply chain and operational assets in the US while it undergoes restructuring in Canada in the wake of an $11 billion class action judgment.
US Bankruptcy Judge Shelley C. Chapman granted the Canadian tobacco importer relief under Chapter 15 of the Bankruptcy Code, which provides legal protections for foreign companies that are undergoing insolvency or restructuring proceedings abroad. With its Canadian bankruptcy recognized by Judge Chapman, ITC now has additional breathing room to come up with a plan of reorganization without disruptions to parts of its operations that run through the US.
The restructuring monitor is represented by Mark E. Dendinger of Bracewell LLP.
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