U.S. Tobacco Cooperative Inc. (USTC) has announced it successfully exited bankruptcy on 14 July. The announcement comes pursuant to the federal Bankruptcy Court’s approval of the Cooperative’s Chapter 11 Plan of Reorganization (Plan) on 23 June, along with approval of the settlement terms with the Lewis Class.
USTC originally filed for bankruptcy protection in July 2021 in order to meet contractual obligations to its member growers while the company addressed uncertainty presented by the ongoing Lewis class action lawsuit.
“Today’s exit from bankruptcy marks the end of more than 17 years of class action lawsuits following the termination of the federal price support program that ran from 1946 to 2005,” said Oscar J. House, chief executive officer, U.S. Tobacco Cooperative. “Our exit allows us to now focus solely on the services and products our Cooperative is known for. I want to thank our customers, employees, suppliers, board of directors, and especially our member growers for their continual support throughout the bankruptcy proceedings, which are now officially behind us.”
In accordance with the Plan, USTC pays in full its secured lenders, suppliers and unsecured creditors in addition to settlement amounts to the Lewis Class, USTC said in a press release.