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Biggest Remaining Holdout Joins Master Settlement Agreement

Klotz on Bonds

Home > News and Perspectives > Biggest Remaining Holdout Joins Master Settlement Agreement

<h3>James A. Klotz</h3>

James A. Klotz

Vibo Corp., the biggest cigarette company remaining outside the Master Settlement Agreement (MSA), has agreed to join the accord as a participating manufacturer, according to New Jersey Attorney General Peter C. Harvey.

The agreement calls for Vibo to make an immediate payment of $78 million to the MSA states and make full payment of its ongoing obligations in each succeeding year. Under current market conditions, the agreement will be worth $1.7 billion to the participating 46 states over the next 10 years.

Since the MSA was originally entered into between the states and the major tobacco companies in 1998, more than 40 other tobacco companies have chosen to participate in the agreement.

Vibo, of Miami, Florida, does business as General Tobacco. Its generic brands include GT One, Bronco, Silver and Champion.

James A. Klotz is the President of FMSbonds, Inc.
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Aug 20, 2004

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