Torys‑advised restructuring case recognized at inaugural Canadian Insolvency Awards

We are pleased to be a part of a landmark case, the Canadian tobacco industry CCAA proceedings, that was recognized at the inaugural Canadian Insolvency Awards. The matter received the Restructuring of the Year Award for its complexity, strategic approach, and significant outcome.

Led by Scott Bomhof, Torys acted as counsel to JT Canada and PricewaterhouseCoopers in its capacity as receiver of JTI-MacDonald TM Corp., in the three historic jointly administered CCAA proceedings of JTI-Macdonald Corp., Imperial Tobacco and Rothmans, Benson & Hedges. This resulted in the approval of plans of arrangement for all three companies that address over one trillion dollars in claims and provides a settlement for the payment of C$32.5 billion to the various claimants.

The case resulted in important jurisprudence regarding: (i) the powers of a court‑appointed mediator; (ii) the scope of releases for future claims; (iii) the use of a cy‑près trust to address claims that cannot be determined; and (iv) the approval of contingency fee arrangements for class action counsel. More broadly, this matter shows how the insolvency process can efficiently and effectively manage and resolve highly complex litigation, including large class actions, within a single coordinated framework.

The Canadian Insolvency Awards recognize excellence across the restructuring and insolvency landscape—honoring the people, firms, and cases that have made a meaningful impact on the profession and the public. To learn more, visit Insolvency Insider's website.

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