06:16 AM EDT, 10/18/2024 (MT Newswires) -- Philip Morris International ( PM ) said Friday that a court-appointed mediator has proposed a 32.5 billion Canadian dollar ($23.56 billion) settlement in the case against its Canadian affiliate Rothmans, Benson & Hedges, as well as Imperial Tobacco and JTI-Macdonald over tobacco product-related claims.

Under the proposal, the three companies would pay an upfront payment equal to the companies' cash and cash equivalents on hand, withholding CA$750 million for working capital and collateral, and subsequent annual payments based on a percentage of the companies' net income after taxes until the total settlement amount is paid.

The proposed settlement, which must receive court approval, would release claims against Rothmans, Benson & Hedges and its affiliates, including Philip Morris ( PM ), relating to the manufacture, marketing, sale, or use of or exposure to both combustible and traditional smokeless tobacco products, the company said.

Philip Morris ( PM ), which has excluded Rothmans, Benson & Hedges from its results since 2019, said reconsolidation of the company's financials would be incremental to its cash and equivalents, cash flow, adjusted EBITDA, adjusted operating income, and adjusted earnings.

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