RALEIGH, N.C. — U.S. Tobacco Cooperative Inc. (USTC) is planning its exit from Chapter 11 bankruptcy later this summer.
The grower-owned marketing cooperative filed for protection in July to meet contractual obligations to its member growers while the company faced uncertainty due to an ongoing class-action lawsuit.
“On Feb. 2, after 17 years of litigation, we were able to reach economic terms of a settlement with the Lewis Class,” said Oscar House, CEO of U.S. Tobacco Cooperative. “As we await final approval from the court this summer, we are beginning to prepare our exit from bankruptcy and continue providing the exceptional service and quality products our organization is known for across the globe.”
U.S. Tobacco Cooperative originally filed for protection in federal bankruptcy court to satisfy obligations to its 500-plus member rowers, 200-plus employees, suppliers and customers. The settlement and reorganization plan will allow the cooperative to honor its commitments worldwide and emerge from bankruptcy well-positions to serve its members, the group said.
“USTC is healthy and set for a sustainable, successful future,” House said. “Throughout the bankruptcy process we have fulfilled all obligations to all stakeholders: our customers, grower-members, vendors and employees. Going forward we will continue to do so, stronger than ever.”
U.S. Tobacco Cooperative processes U.S. flue-cured tobacco that’s grown by its members in Florida, Georgia, South Carolina, North Carolina and Virginia. The tobacco is processed and sold as raw materials to cigarette manufacturers worldwide. Subsidiaries of U.S. Tobacco Cooperative include U.S. FlueCured Tobacco Growers (USFC), Premier Manufacturing, Franchise Wholesale (doing business as Wildhorse Distributing), Big South Distribution and King Maker Marketing Inc.
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