Sino-Forest Says Probe Refutes Muddy Waters Allegations
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Sino-Forest Corp., the Chinese timber company whose shares slumped 74 percent since June, said an independent committee refuted the “substance” of fraud allegations by Carson Block’s research firm Muddy Waters LLC.
The committee confirmed the company’s timber assets, cash balance and titles in an interim report released today, Toronto-listed Sino-Forest said in a statement. The committee, which hired PricewaterhouseCoopers LLP to assist the probe, wasn’t able to verify the valuation of forestry holdings or reconcile some revenue.