Imperial Tobacco Granted Temporary US Asset Protection

A New York bankruptcy judge has granted Imperial Tobacco Canada Ltd. temporary protection for its U.S. assets until Canadian restructuring proceedings launched this month in the wake of an $11 billion tobacco suit judgment are formally recognized in the U.S.

In an order issued Monday, U.S. Bankruptcy Judge Shelley Chapman granted a preliminary injunction to the court-appointed restructuring monitor for ITC, who said the company will be unable to operate if its tobacco shipments through the U.S. are left vulnerable to seizure by creditors.

The restructuring monitor is represented by Mark E. Dendinger of Bracewell LLP.

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