In March 2019, JTI-Macdonald Corp., Imperial Tobacco Canada Limited, and Rothmans, Benson & Hedges Inc. (together, the “Applicants”) applied for and obtained protection pursuant to the Canadian Companies’ Creditors Arrangement Act (the “CCAA”) in three separate proceedings before the Ontario Superior Court of Justice (Commercial List). The three proceedings are being jointly case managed by the Honourable Justice Thomas McEwen.
It is anticipated that claims against the Applicants to recover damages in respect of the development, manufacture, production, marketing, distribution and sale and tobacco products (“Tobacco Claims”) will exceed $800 billion, making the combined proceedings the most complex insolvency proceeding in Canadian history.
On April 5, 2019, Justice McEwen granted orders in each of the three proceedings appointing the Honourable Warren K. Winkler, Q.C., as a court-appointed mediator to mediate a global settlement of the Tobacco Claims. Justice McEwen has also directed that related issues be mediated by Mr. Winkler.
Since his appointment, Mr. Winkler has actively engaged with the many stakeholders and will continue to do so in an effort to achieve a global resolution of this complex and important dispute.