U.S. Tobacco Cooperative Files Chapter 11
After Termination of Federal Tobacco Price Support Program
Raleigh, N.C.-based U.S. Tobacco Cooperative, the “largest tobacco cooperative in the United States” and the “most vertically-integrated company in the industry, operating leaf receiving stations, green leaf threshing and redrying, primary blending, cigarette manufacturing, and wholesale distribution,” filed for chapter 11 protection on Wednesday, July 7, in the Bankruptcy Court for the Eastern District of North Carolina along with several affiliates. The bankruptcy filing follows a series of lawsuits and an adverse ruling in a North Carolina state court class-action brought by co-op members resulting in a default under the debtors’ first lien credit agreement and the acceleration of all amounts due under tranche A revolver notes in the outstanding amount of $99.6 million. Click through for our full case summary of the U.S. Tobacco Cooperative chapter 11 filing.
Contact: Matt Danese