Court Approves Sino-Forest's Plan of Compromise and Reorganization
TORONTO, Dec. 10, 2012
TORONTO, Dec. 10, 2012 /PRNewswire/ - Sino-Forest Corporation ("Sino-Forest"
or the "Company") announced today that the Ontario Superior Court of Justice
has approved the Company's Plan of Compromise and Reorganization pursuant to
the Companies' Creditors Arrangement Act (Canada) (the "CCAA") and the Canada
Business Corporations Act dated December 3, 2012 (the "Plan"). The Plan is
designed to facilitate the completion of a restructuring transaction
concerning, affecting and involving Sino-Forest under which, among other
things, Sino-Forest will transfer substantially all of its assets, other than
certain excluded assets, to a newly formed entity to be owned by the affected
creditors of Sino-Forest.
Court approval of the Plan satisfies a key condition precedent to
implementation of the Plan. If the remaining conditions precedent set out in
the Plan are satisfied or waived within the time frames anticipated,
Sino-Forest intends to implement the Plan as soon as possible and not later
than January 15, 2013.
Further information concerning the Plan is available on the Monitor's website
at http://cfcanada.fticonsulting.com/sfc, the Company's website at
www.sinoforest.com, and on SEDAR at www.sedar.com.
This news release contains forward-looking information within the meaning of
applicable securities laws ("forward-looking statements"), including
forward-looking statements relating to Sino-Forest's intention to implement
the Plan as soon as possible and not later than January 15, 2013. The forward
looking statements expressed or implied by this news release are subject to
important risks and uncertainties. Forward-looking statements are based on
estimates and assumptions made by the Company in light of its experience and
its perception of historical trends, current conditions and expected future
developments, as well as other factors that the Company believes are
appropriate in the circumstances. The results or events predicted in these
statements may differ materially from actual results or events and are not
guarantees of future performance of Sino-Forest. Factors which could cause
results or events to differ from current expectations include, among other
things: Sino-Forest's ability to complete the Plan in the time period
contemplated, if at all, which is dependent on its ability to comply with the
closing conditions to the Plan, many of which are significant and beyond the
control of Sino-Forest, including the approval of securities and other
regulatory authorities; actions taken by the Company's noteholders, lenders,
creditors, shareholders, and other stakeholders to enforce their rights;
actions taken against the Company by governmental agencies and securities and
other regulators; actions taken by the Monitor; the outcome of examinations
and proceedings currently underway by law enforcement and securities
regulatory authorities; the outcome of class action or other proceedings which
have been or may in future be initiated against the Company; and the Company's
ability to continue to operate without former senior management, almost all of
whom have ceased to employed by the Company; and other factors not currently
viewed as material that could cause actual results to differ materially from
those described in the forwarding-looking statements. Sino-Forest Corporation
disclaims any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise, except as required by law.
SOURCE Sino-Forest Corporation
All inquiries regarding the Company's proceedings under the CCAA should be
directed to the Monitor, FTI Consulting, via email at:email@example.com,
or telephone: (416) 649-8094. Information about the CCAA proceedings,
including copies of all court orders and the Monitor's reports, are available
at the Monitor's websitehttp://cfcanada.fticonsulting.com/sfc.
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