Tabacalera have been seeking to dissociate Chen Zhi from the capital of Habanos S.A. But three simultaneous legal proceedings are making any sale impossible in the short term.

 

Tabacalera has openly sought the dissociation of Chen Zhi from Habanos S.A.’s capital since December 2025. But beyond the identity of any potential buyer, three distinct legal obstacles are currently blocking any transaction.

First obstacle: the British Virgin Islands

Since January 9, 2026, at Tabacalera’s request, Interpath Advisory has been appointed provisional liquidator of 30 offshore companies linked to Chen Zhi by the Eastern Caribbean Supreme Court (ECSC) — including Simply Advanced Limited, the holding company that controls 57% of Allied Cigar Corporation, co-owner of Habanos S.A. through Tabacalera SLU.

However, the British Virgin Islands (BVI) court orders are explicit: provisional liquidators cannot sell, distribute, or realize assets without prior court authorization. This limitation was observed as early as April 2026: Interpath had initially requested the US court’s authority to “realize” the assets (i.e., sell them). During his deposition on May 13, 2026, one of the liquidators admitted under oath that several parties had expressed interest in acquiring Simply Advanced’s stake in Allied Cigar, and that non-disclosure agreements had been signed to that effect.

However, this claim was challenged by Cosimo Borrelli, a Hong Kong-based restructuring firm, who alleges he was appointed director of several BVI entities through a chain of powers tracing back to Chen Zhi before his arrest. The validity and origin of these powers of attorney are now being contested by Interpath’s liquidators in a US court.

Second obstacle: New York

In parallel with the BVI proceedings, Interpath filed for Chapter 15 bankruptcy protection in Manhattan on April 8, 2026, primarily seeking access to financial documents held by U.S. institutions and to locate bank assets linked to the Chen Zhi network in the United States. Judge Martin Glenn granted provisional protection on April 23—but only to preserve the assets, not to sell them.

On May 22, Cosimo Borrelli filed a 41-page formal objection challenging the very legitimacy of the BVI proceedings and asking Judge Glenn to deny recognition. This Tuesday, June 9, 2026, Judge Glenn is scheduled to rule on the formal recognition of the BVI proceedings in the United States—a decision upon which the extent of Interpath’s powers over the Chen Zhi network’s U.S. assets depends. Borrelli is asking the court to reject this recognition. The judge’s decision is expected in the days or weeks following the hearing.

Third obstacle: Hong Kong

On May 4, 2026, the Hong Kong High Court froze HK$8.94 billion (€990 million) in assets linked to Chen Zhi and three of his associates, including 15 of the 30 BVI entities under provisional liquidation. The freeze explicitly covers companies in the Allied Cigar group—whose main bank accounts Interpath itself has acknowledged are in Hong Kong.

This Hong Kong freeze comes on top of US and UK sanctions and the BVI block—creating a situation where the same assets are simultaneously under the control of three different jurisdictions, with partially conflicting timelines and objectives.

What this means for Habanos and its distributors

In practical terms, Chen Zhi’s separation from the capital of Allied Cigar/Tabacalera/Habanos can only occur after a coordinated ruling from the courts of Tortola (BVI), New York, and Hong Kong. The most likely scenario—a sale of Chen Zhi’s shares to a “clean” buyer—requires explicit court authorization in at least two of these three jurisdictions. According to information published by the Spanish daily El Confidencial, citing sources within Tabacalera’s communications department, the Emirati fund Renovaire Group—which already owns 42.9% of Allied Cigar—is the likely buyer. However, this information has never been officially confirmed by Renovaire.

Tabacalera obtained provisional licenses in the United States and the United Kingdom in May 2026, allowing it to maintain day-to-day operations. But these licenses don’t resolve the fundamental issue: as long as Chen Zhi remains a de facto indirect shareholder, European banks will continue to apply de-risking measures to all Habanos distributors—as L’Amateur de Cigare has documented since February 2026.

The timeline remains entirely open. “Will it take two months, six months, or a year? We don’t know,” a European distributor succinctly told L’Amateur de Cigare in March 2026. Four months later, the answer remains the same. The June 9 hearing before the Manhattan court could provide a first, partial answer.

Laurent Mimouni