A U.S. bankruptcy judge, Martin Glenn, has granted liquidators authority over the U.S. assets of Chen Zhi, a sanctioned Chinese businessman. This ruling clears the way for the eventual sale of Chen's controlling stake in Allied Cigar Corporation SL, the parent company of Tabacalera, which in turn co-owns Habanos S.A., the global distributor for Cuban cigars, with a 50% ownership.
Interpath Advisory, the liquidators, had already taken operational control of Tabacalera and Allied Cigar Corporation in February 2026, with Paul Pretlove appointed president of both companies. This intervention was reportedly prompted by a severe financial crisis following the October 2025 U.S. sanctions against Chen Zhi and Prince Group, which led to banks freezing accounts and disrupting Tabacalera's operations. Pretlove testified that Allied Cigar Corporation generates over $300 million in annual EBITDA.
Renovaire Group, an Abu Dhabi-based entity that already holds 42.9% of Allied Cigar, is considered the leading candidate to acquire Chen's stake. However, the sale will require approval from the British Virgin Islands court overseeing the liquidation, and competing claims in multiple jurisdictions, including a frozen HK$8.94 billion in assets linked to Chen by the Hong Kong High Court, remain active. Chen's 57.1% interest in Allied Cigar indirectly represents a 50% ownership in Habanos S.A. because Tabacalera and Cuba's state tobacco interests each own half of Habanos. The U.S. Treasury Department linked Chen Zhi's Prince Group to a global criminal enterprise involved in fraud, scam compounds, and money laundering in June 2026.
