Meanwhile, liquidation proceedings are underway in the British Virgin Islands to lead to a final dissociation of Chen Zhi.

 

Tabacalera SLU has filed for “pre-insolvency” (pre-concourso) in Spain, a step it describes as strictly preventative and intended to “protect the company’s day-to-day operations and ensure business continuity .”

According to sources within the company’s communications team, this decision is “not the result of liquidity constraints, reduced demand, product issues, or business performance,” but aims to secure its banking relationships in the context of the sanctions against Chen Zhi.

The company is not providing any details about the banking disruptions it is experiencing and is being cautious about the timeline: “We are currently unable to provide an estimated timeline for resolution,” given that the procedure is supposed to have been initiated at least by mid-December 2025.

When contacted by L’Amateur regarding the link between the international sanctions against Chen Zhi and the disruptions to Cuban cigar deliveries observed in the United Kingdom, Tabacalera’s communications department did not respond.

 

Save time

As recently revealed by the Spanish website El Confidencial, the Madrid-based company has requested the appointment of the Teneo firm as an independent expert to implement the protection offered by pre-insolvency proceedings. The stated objective is to buy time until a “definitive separation” from Chen Zhi is achieved, in compliance with applicable law.

Pre-insolvency, a mechanism provided for by Spanish bankruptcy law, allows a company to initiate negotiations under judicial protection without being formally declared insolvent. In this case, it appears as a legal tool aimed at mitigating the collateral effects of international sanctions against its shareholder.

 

Offshore company liquidations

Tabacalera clarifies, however, that any developments concerning Chen Zhi’s position as a shareholder “are not being pursued through the [Spanish] pre-insolvency proceedings” but under a separate procedure initiated in the British Virgin Islands (BVI). The Eastern Caribbean Supreme Court (ECSC) has appointed the firm Interpath as provisional liquidator of several offshore companies based in the BVI, including the vehicle through which Chen Zhi holds his stake in Allied and, indirectly, in Tabacalera SLU.

Tabacalera indicates that its objective is to achieve, “through Interpath,” a definitive separation from Chen Zhi and to obtain the necessary license from the U.S. Office of Foreign Assets Control (OFAC) to allow the full resumption of its banking operations.

The Madrid-based group states that it has given “the highest priority” to this strategy, hoping that the liquidator appointed by the Caribbean court can take the necessary steps to restore “normal operating conditions” as quickly as possible.