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Tobacco companies lose out on debt

Imperial Tobacco and JTI will only receive £66m of £207m secured credit owed to them by Palmer & Harvey (P&H), administrator PwC has confirmed.

Imperial Tobacco and JTI will only receive £66m of £207m secured credit owed to them by Palmer & Harvey (P&H), administrator PwC has confirmed. 

More than £266m of secured credit, including interest, was owed to suppliers following P&H’s collapse in November 2017. Barclays, HSBC, RBS and Santander are to receive the majority of secured credit owed at £187m. 

Although both tobacco suppliers will receive a share of the £66m payment by the end of December, PwC said other creditors were unlikely to receive the full amount of secured credit owed to them. 

A PwC progress report in December said: “We don’t think the secured creditors will be fully repaid their lending and accrued interest out of their security over the group’s assets.”

Total credit owed to suppliers by P&H is more than £342m; Imperial and JTI are owed £207m.

Read similar: HMRC tobacco seizures fail to stop illegal sellers

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