US Tobacco Cooperative Hits Ch. 11 With $100M Debt
Law360 (July 8, 2021, 5:32 PM EDT) -- U.S. Tobacco Cooperative Inc. has filed for Chapter 11 protection in a North Carolina bankruptcy court with more than $100 million in debt, citing changes in federal regulation that prompted litigation and a recent damages award to member farmers.
The cooperatively owned tobacco processor and manufacturer has $99.6 million in secured debt and $2.5 million in trade debt, according to a first-day declaration filed Wednesday by Chief Financial Officer Keith Merrick. The cooperative is seeking to fund its bankruptcy proceeding with cash collateral, the document shows.
Merrick's declaration pointed to a July notice from the cooperative's lender banks, finding U.S. Tobacco...
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