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CNN Live At Daybreak

Judge Reinstates Philip Morris $12 Billion Bond Order

Aired August 18, 2003 - 06:14   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


FREDRICKA WHITFIELD, CNN ANCHOR: Time now to check on business. A court deals a major blow to Philip Morris.
Joya Dass is at the Nasdaq market with more on that.

Good morning to you -- Joya.

JOYA DASS, CNN FINANCIAL NEWS CORRESPONDENT: Good morning to you, Fredricka.

Well it's worth doing a little background history on this one, because this has become a real complicated story. Now back in March, an Illinois judge had said that Philip Morris USA was going to have to pay a $12 billion bond payment. This after a jury had levied this verdict that Philip Morris USA had actually misled cigarette smokers into believing that light cigarettes were better than regular ones.

Well Philip Morris begged and pleaded that this was going to really push them into bankruptcy if they were going to have to make good on this $12 billion bond payment and so the judge actually cut it in half. Well low and behold, an appellate court in the state of Illinois has now said that the judge didn't have the authority to actually do this. So the news today is that Illinois judge has actually reinstated the order that Philip Morris USA is going to have make good on this $12 billion payment.

Now the silver lining in the story is this, the judge has actually given a 60-day stay of his ruling so this means that the Illinois Supreme Court is going to be able to get in on the action right now and possibly issue its ruling on this. So there might still be an out for Philip Morris and the end of it all -- Fredricka.

WHITFIELD: All right, Joya, thanks very much.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com






Aired August 18, 2003 - 06:14   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: Time now to check on business. A court deals a major blow to Philip Morris.
Joya Dass is at the Nasdaq market with more on that.

Good morning to you -- Joya.

JOYA DASS, CNN FINANCIAL NEWS CORRESPONDENT: Good morning to you, Fredricka.

Well it's worth doing a little background history on this one, because this has become a real complicated story. Now back in March, an Illinois judge had said that Philip Morris USA was going to have to pay a $12 billion bond payment. This after a jury had levied this verdict that Philip Morris USA had actually misled cigarette smokers into believing that light cigarettes were better than regular ones.

Well Philip Morris begged and pleaded that this was going to really push them into bankruptcy if they were going to have to make good on this $12 billion bond payment and so the judge actually cut it in half. Well low and behold, an appellate court in the state of Illinois has now said that the judge didn't have the authority to actually do this. So the news today is that Illinois judge has actually reinstated the order that Philip Morris USA is going to have make good on this $12 billion payment.

Now the silver lining in the story is this, the judge has actually given a 60-day stay of his ruling so this means that the Illinois Supreme Court is going to be able to get in on the action right now and possibly issue its ruling on this. So there might still be an out for Philip Morris and the end of it all -- Fredricka.

WHITFIELD: All right, Joya, thanks very much.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com