Sino-Forest Announces Implementation of Plan of Compromise and Reorganization

Sino-Forest Announces Implementation of Plan of Compromise and Reorganization

PR Newswire

TORONTO, Jan. 30, 2013

TORONTO, Jan. 30, 2013 /PRNewswire/ - Sino-Forest Corporation ("Sino-Forest"
or the "Company") today announced that it has implemented its previously
announced Plan of Compromise and Reorganization dated December 3, 2012
pursuant to the Companies' Creditors Arrangement Act (Canada) (the "CCAA") and
the Canada Business Corporations Act (as amended, the "Plan") with an
implementation date of January 30, 2013. As previously announced, the Plan was
overwhelmingly approved by creditors at a meeting of affected creditors held
on December 3, 2012 and received approval of the Ontario Superior Court of
Justice on December 10, 2012.

Pursuant to the Plan, the Company completed a restructuring transaction  under 
which, among other  things, Sino-Forest transferred  substantially all of  its 
assets, other than certain excluded assets, to a newly formed entity ("Newco")
(and/or a wholly-owned subsidiary of Newco) owned by the affected creditors of
Sino-Forest in exchange  for a  release of  the claims  of affected  creditors 
against Sino-Forest  and its  subsidiaries. The  assets transferred  to  Newco 
and/or its wholly-owned subsidiary  pursuant to the restructuring  transaction 
included all of the shares of the Company's directly owned subsidiaries  which 
own, directly or indirectly, all of  the business operations of the  Company. 
The assets transferred  to Newco  and/or its wholly-owned  subsidiary did  not 
include, among other things, certain litigation claims of the Company  against 
third parties which were  transferred to a  litigation trust (the  "Litigation 
Trust") established pursuant to  the Plan to pursue  such claims on behalf  of 
the affected  creditors of  the Company  and certain  other stakeholders,  and 
certain cash amounts used to fund the Litigation Trust and certain other  cash 
reserves established under the Plan. Pursuant to the Plan, affected creditors
with proven claims against the Company received pro rata distributions of  the 
equity of  Newco, certain  new notes  issued  by Newco  and interests  in  the 
Litigation Trust.  In connection  with the  implementation of  the Plan,  the 
court-appointed  Monitor  of  the  Company  has  issued  a  Sixteenth   Report 
concerning the CCAA process  and the Plan,  which provides additional  details 
concerning the Plan and Newco (and  its wholly-owned subsidiary) and which  is 
available  at   the   Monitor's   website  for   the   CCAA   proceedings   at

In addition,  Sino-Forest ceased  to be  a  reporting issuer  in each  of  the 
applicable jurisdictions  in  Canada  by  order  of  the  applicable  Canadian 
securities regulators immediately prior to the completion of the restructuring
transaction. All  of the  outstanding  common shares  of Sino-Forest  will  be 
cancelled for no consideration on March 4, 2013.

SOURCE Sino-Forest Corporation


All inquiries regarding the Company's proceedings under the CCAA should be
directed to the Monitor, FTI Consulting, via email,
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 website
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