MONTREAL, Aug. 29, 2025 /CNW/ - Imperial Tobacco Canada (Imperial) has today announced it has formally exited protection under the Companies' Creditors Arrangement Act (CCAA). With the Court-approved Plan of Compromise and Arrangement now in effect, litigation concludes and a new chapter for the company begins. The Plan provides maximum recovery for claimants while bringing stability to the business and its stakeholders.
"Today marks a pivotal moment for Imperial Tobacco Canada as we formally exit CCAA protection," said Eric Gagnon, Vice-President, Corporate & Regulatory Affairs at Imperial. "With the Plan of Compromise and Arrangement now in effect, this resolution maximizes value for claimants and enables Imperial to move forward with confidence."
Addressing the Illicit Market
Imperial stressed that Canada's out-of-control illicit trade in tobacco products must be a priority for all levels of government. The company estimates that the Canadian black-market accounts for over 30% of all tobacco sales, an alarming figure that continues to rise.
These illicit tobacco products are sold without age checks, without health warnings, and directly benefit organized crime. The illicit trade undermines public health goals, harms law-abiding small businesses, and threatens the stability of the Court-approved Plan by diverting sales away from the legal, regulated market, sales that directly fund annual payments to claimants.
"The illicit tobacco market is one of the single greatest obstacles to ensuring accelerated payout to the claimants," added Gagnon. "We are ready to work with all levels of government to shut down this dangerous underground industry. Every dollar that flows to organized crime from illicit tobacco sales is a dollar lost to Canadian communities, to public health, and to the provinces who benefit from this Plan. Tackling illicit trade is also essential to protecting the integrity of the Court-approved CCAA resolution."
Imperial's exit from CCAA marks not just the conclusion of a long legal process, but also the beginning of a renewed commitment to constructive engagements with governments and all stakeholders to ensure the success of the Plan.
About Imperial Tobacco Canada
Imperial Tobacco Canada is the leading tobacco and nicotine company in Canada, part of the global BAT group. Our mission at BAT is to create A Better Tomorrow™ by promoting a Smokeless World. We envision a future where smokeless products replace cigarettes, encouraging smokers to make a Switch to Better.
Imperial is committed to advancing THR through transparency, innovation, and collaboration. One such initiative is Omni™, a platform developed by our parent company BAT, to support education and stakeholder engagement around THR. Omni™ serves as a dynamic resource for those working toward a smoke-free future.
SOURCE Imperial Tobacco Canada
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