After originally filing for protection in July 2021, U.S. Tobacco Cooperative (USTC) has begun planning an exit from Chapter 11 bankruptcy later this summer. The cooperative filed for protection to meet contractual obligations to its member-growers while the company faced uncertainty presented by 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 J. House, CEO of USTC. “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.”
USTC originally filed for protection in federal bankruptcy court to satisfy obligations to its 550-plus member-growers, 200-plus employees, suppliers and customers. The settlement and plan of reorganization will allow the cooperative to honor its commitments worldwide and emerge from bankruptcy well positioned to serve its member-growers. Details of the agreement will be provided in the ordinary course of obtaining formal court approval of the settlement and USTC’s plan of reorganization.
“USTC is healthy and set for a sustainable, successful future,” continued House. “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 is a grower-owned marketing cooperative located in Raleigh, N.C. The cooperative processes U.S. flue-cured tobacco grown by its 550-plus member-growers in Florida, Georgia, South Carolina, North Carolina and Virginia. Member-grower tobacco is processed and sold as raw materials to cigarette manufacturers worldwide. Subsidiaries of USTC include U.S. Flue-Cured Tobacco Growers (USFC), Premier Manufacturing, Franchise Wholesale (d/b/a Wildhorse Distributing), Big South Distribution and King Maker Marketing. USTC, through its subsidiaries, also produces consumer products for the U.S. market under brand names of Wildhorse, 1839, Manitou, Shield, 1st Class, Ultra Buy and Traffic.
