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TORONTO - British American Tobacco (NYSE:BTI) PLC (BAT (LON:BATS)) announced that the Ontario Superior Court of Justice has sanctioned a Plan of Compromise and Arrangement for its subsidiary, Imperial Tobacco (LON:IMB) Canada Limited (ITCAN), in ongoing proceedings under the Canadian Companies’ Creditors Arrangement Act (CCAA). This plan, resulting from a court-supervised mediation, aims to settle all outstanding tobacco litigation in Canada.
The sanctioned plan, a critical milestone in the CCAA process, provides a comprehensive release for ITCAN, BAT, and related entities from all Canadian tobacco claims. The settlement will be funded through ITCAN’s cash reserves and future tobacco product sales in Canada.
"We are pleased that the Court has sanctioned the Mediator’s and Monitor’s Plan of Compromise and Arrangement," an ITCAN representative said. "This is a critical milestone in the CCAA process, and we look forward to the successful implementation of this Plan, which maximizes value for claimants and resolves outstanding tobacco litigation."
BAT’s Chief Executive, Tadeu Marroco, remarked on the importance of the court’s decision, stating, "After six years of negotiation, today’s decision is an important step that brings ITCAN closer to emerging from CCAA for the benefit of all stakeholders."
The announcement clarifies that this development does not affect BAT’s 2025 guidance, which includes approximately 1% revenue growth and 1.5-2.5% adjusted profit from operations growth. BAT also reaffirms its commitment to a sustainable share buy-back, including the £900 million planned for 2025.
BAT, a leading multi-category consumer goods business, is focused on building a smokeless world through products like Vuse, glo, and Velo. The company, which employs over 48,000 people and generated £25.9 billion in revenue in 2024, is also committed to environmental sustainability, aiming for net-zero emissions across its value chain by 2050.
This update is based on a press release statement and does not reflect any speculative information.
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