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Article: Tobacco Move Doesn't Faze Virginia: State: Arbitration Won't Affect Bonds.
- Article from:
- The Bond Buyer
- Article date:
- May 11, 2005
- Author:
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WASHINGTON -- Tobacco bond prices were slightly sluggish yesterday following the news that major tobacco companies have entered into arbitration, hoping to win permission to lower payments they make to states under the terms of the 1998 Master Settlement Agreement.
The Bond Buyer reported Tuesday that it had obtained letters from lawyers representing Philip Morris USA, Lorillard Tobacco Co., and R.J. Reynolds Tobacco Co. informing parties involved in the MSA that they intend to seek reduced payments under the so-called non-participating manufacturer, or NPM, clause of the agreement. That clause in the MSA allows participating companies to reduce their payments to ...