Philip Morris International (PM) said Friday that its de-consolidated Canadian affiliate, Rothmans, Benson & Hedges, has had its plan of compromise and arrangement approved by a Canadian court.

The company said the plan resolves all tobacco-related claims and litigation in Canada against Rothmans, Benson & Hedges, and its affiliates, including Philip Morris International.

The resolution, also approved for Imperial Tobacco Canada and JTI-Macdonald, involves a global settlement of 32.5 billion Canadian dollars ($22.7 billion), the company said.

Philip Morris International said the settlement will be funded through an upfront payment based on available cash and cash equivalents, plus annual payments based on the companies' net after-tax income.

Rothmans, Benson & Hedges will retain $CA750 million for its discretion and will be released from claims related to its combustible and smokeless tobacco products prior to the effective date of the plan, it added.