A judicial victory for the Chinese-Cambodian businessman Chen Zhi, linked to the shareholders of Habanos S.A. and sanctioned by the United States, the United Kingdom, and the European Union, could further complicate the international marketing of Cuban cigars, which has been affected for months by banking restrictions.
A court in the British Virgin Islands announced its intention to reject the liquidation petitions of 30 companies associated with Chen Zhi, including a company with an indirect stake in Habanos S.A., the firm responsible for marketing the island's cigars.
According to the specialized media Cigars-Connect, Judge Gerhard Wallbank determined that the authorities did not provide sufficient admissible evidence to justify the liquidation of those companies.
The decision, announced on October 21, represents a step forward for the businessman, who is currently detained in China, but does not eliminate the international sanctions against him nor does it resolve the banking issues of cigar distributors.
It also does not imply an immediate return of control over the companies. The provisional administrators, appointed in January to protect their assets, remain in office as they await the publication of the written ruling after November 6.
The defense aims for the management to be handed over to Cosimo Borrelli, presented as an independent administrator, although appointed by Chen Zhi himself. A new hearing, scheduled for December 8 and 9, will address the conditions of that transition.
The legal dispute has also moved to the United States. On November 2, Borrelli's attorneys filed a petition with a New York court to terminate the powers granted to the provisional administrators under Chapter 15 of U.S. bankruptcy legislation.
Who is Chen Zhi and why is he linked to Cuba?
Chen Zhi, also known as "Vincent," is the founder of Prince Holding Group, a business conglomerate based in Cambodia that operates in sectors such as real estate and finance.
In October 2025, the U.S. Department of Justice accused him of conspiracy to commit wire fraud and money laundering for allegedly running a cryptocurrency scam network that exploited trafficking victims, holding them against their will and forcing them to deceive investors.
The investigation led to a seizure action involving approximately 127,271 bitcoins, valued at around 15 billion dollars at the time, which were under U.S. custody. Washington and London also imposed sanctions against the businessman and numerous companies within his network.
His connection to Cuba came to light through investigations into the shareholder structure of Habanos S.A., gathered in October 2025.
Chen Zhi participated in the consortium that acquired the handmade cigar business of the British multinational Imperial Brands in 2020 for 1.4 billion dollars.
Through registered companies in various territories, including Simply Advanced Limited, the businessman came to indirectly control 57.1% of Allied Cigar Corporation, which owns Tabacalera, participating in 50% of Habanos S.A.
This amounts to an estimated indirect economic stake of 28.55% in Habanos S.A. The other 50% of the company belongs to the Cuban state through Cubatabaco.
In November 2025, CiberCuba published new details about the network of companies that allowed the businessman to establish his presence in the Cuban tobacco industry.
Chen Zhi was arrested in Cambodia and extradited to China in January 2026. Subsequently, in July, it was revealed that he faced charges in that country for intentional injuries committed by cruel means, a crime that can be punished with life imprisonment or the death penalty.
Why does this decision affect Cuban cigars?
In September, Fifth Avenue Products Trading, the official distributor in Germany, Austria, and Poland, suspended its operations due to banking restrictions related to Chen Zhi.
The situation worsened on November 1, when the company formally entered insolvency proceedings in Germany. Its judicial administrator warned that it has money and warehouses full of cigars, but the sanctions prevent it from making payments and distributing products normally.
The possible return of control of the companies to a representative designated by Chen Zhi could heighten banks' distrust and put under review the special licenses that allow certain distributors to operate in the United Kingdom and the United States.
The judge himself warned that an immediate withdrawal of the provisional administrators could lead to job losses and business closures, thus calling for an orderly transition.
Uncertainty strikes one of Cuba's main sources of export income. Habanos S.A. recorded record sales of 827 million dollars in 2024, but distribution challenges threaten its presence in key international markets.
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