Brooke Group Says Liggett May Not Survive

Brooke Group Ltd. said its Liggett Group cigarette unit may not generate sufficient cash to meet its debt payments, raising serious doubts about its future as a going concern. The Miami-based conglomerate told the Securities and Exchange Commission that if Liggett cannot find a way to refinance or restructure its debt, it may have to seek bankruptcy protection from creditors. Finances at the maker of Eve and Chesterfield cigarettes, which have been rocky for at least a year, have come under greater scrutiny after its landmark agreement last month to pay 25% of its pretax income for the next 25 years to states suing the tobacco industry. Liggett had a working capital deficiency of $176.5 million as of Dec. 31, about 5% wider than it had Sept. 30.