A class action claim seeking more than $1 billion postponed U.S. Tobacco Cooperative’s (USTC) bankruptcy exit, as the co-op agreed to suspend a hearing on its proposed reorganization plan to mediate lingering disputes with lenders and former grower members, reports Bloomberg Law.
In July, USTC filed for Chapter 11 protection in federal court to meet short-term contractual obligations to its member growers during the 2021 crop season.
“This filing will allow USTC to reorganize and restructure to honor commitments to stakeholders and ensure the organization’s sustainable future,” the company wrote in a press note at the time.