The maker of Prime Time Flavored Cigars was unable to refinance its debt and has filed for chapter 11 protection as it battles with the U.S. Department of Agriculture over how its products are taxed, the Wall Street Journal reported today. Prime Time International Co. filed for chapter 11 on Saturday, saying that “the imposition of tobacco-related assessments, which are disputed and subject to litigation, has hampered the company's ability to refinance its secured debt and expand its operations." In 2004, Congress passed a farm quota law that taxed tobacco, according to Prime Time's court documents. The law, the company said, didn't differentiate properly between the assessment for large cigars and little cigars, like the ones Prime Time sells.
