Creditors expected to vote on proposed $32.5B deal with tobacco giants today

Creditors are expected to vote today on a proposed settlement that would see three major tobacco manufacturers pay out billions to provinces and territories, as well as smokers across Canada.

The proposed $32.5-billion global settlement between the companies — JTI-Macdonald Corp., Rothmans, Benson & Hedges and Imperial Tobacco Canada Ltd. — and their creditors was announced in October after more than five years of negotiations.

Representatives for the creditors, which include provincial governments seeking to recover smoking-related health-care costs as well as plaintiffs in two Quebec class-action lawsuits, are expected to review and vote on the proposed plan in a confidential virtual meeting.

If the proposal is accepted by a majority of creditors, it will then proceed to the next step: a hearing to obtain the approval of the court, which has been tentatively scheduled for early next year.