Settlement Structure and Historic Scale
The deal requires an upfront payment of nearly CA$12.5 billion in cash, followed by the transfer of the companies’ net after-tax income for the next 20 years. Feldsher emphasized that the agreement is the largest of its kind since the landmark 1998 U.S. tobacco settlement, which saw American firms commit $200 billion.
Imperial filed its restructuring blueprint in October 2024, later approved by a Canadian court in March of this year.
U.S. Links and Legal Finality
While Imperial operates solely within Canada, its supply chain passes through the United States, where it also stores inventory. The company also carried legacy U.S. pension obligations from past acquisitions, though those liabilities have now been resolved.
In addition to Chapter 15 recognition, Judge Mastando validated the Canadian court’s appointment of the plan administrator and issued an order barring unauthorized solicitation of claims.
