"Because of the extraordinary amount of the bond presently required by the Madison County trial judge, it is presently uncertain whether Philip Morris USA will be able to make the Section IX(c) payment on April 15," wrote Denise Keane, senior vice president and general counsel for Philip Morris in a letter to states attorneys.

In the Illinois class-action lawsuit, Philip Morris was ordered to pay $10 billion for misleading smokers into believing its "light" cigarettes are less harmful than regular cigarettes. Before the tobacco company can appeal the ruling, it must post a $12-billion bond, which represents the award plus costs and interest.

If the issue isn't resolved, Washington State Attorney General Christine Gregoire said she and other state attorneys would file motions to intervene in the Illinois case in the hopes of getting the appeal bond reduced.

Gregoire also threatened to sue Philip Morris if it doesn't pay the $60 million it owes Washington under the tobacco settlement agreement.

Philip Morris spokesman Brendan McCormick said the company is exploring "a more reasonable bond cap" through the Illinois legislature and the courts.

"We'd like our arguments to be heard on appeal without the company being financially crippled by an unfair and unreasonable bonding requirement," he said.

Anti-smoking advocates said Philip Morris' statements are an attempt to "blackmail" the courts and the Illinois legislature.

"There is no indication that the company is curtailing its multibillion-dollar annual expenditures to market and promote its products," said Matthew L. Myers, president of the Campaign for Tobacco-Free Kids. "There is also no evidence that Philip Morris has curtailed its dividend payments to shareholders or its massive spending on lobbying and political contributions."

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