TORONTO — An Ontario court has extended an order suspending legal proceedings against three major tobacco companies as they try to negotiate a settlement with their creditors.

Ontario Superior Court Justice Thomas McEwen told a Toronto court this morning there would be "no prejudice to any stakeholder" from extending the stay to Sept. 30.

The extension was requested by the companies — JTI-Macdonald Corp., Rothmans, Benson & Hedges and Imperial Tob Loblaw acco Canada Ltd. — and was not opposed by any of the parties. The stay was previously set to expire next month.

A lawyer for Imperial Tobacco said the longer timeline is necessary for the mediation efforts to progress, and noted "significant developments" have already taken place.

The order to suspend legal proceedings against the three tobacco giants was first granted nearly a year ago after the companies lost an appeal in a landmark class-action lawsuit in Quebec.

The stay is meant to preserve the status quo while the companies work out a global settlement with the class-action members and several other creditors, including a number of provincial governments seeking to recover smoking-related health-care costs.