TORONTO, Nov. 23, 2012 /CNW/ - Sino-Forest Corporation ("Sino-Forest" or
the "Company") announced that the Court of Appeal for Ontario today
dismissed an appeal by the Company's former auditors and underwriters
from an order made by the Ontario Superior Court of Justice (the "CCAA
Court") on July 27, 2012.
On July 27, 2012, the CCAA Court made an order that certain shareholder
class action claims against the Company, and certain indemnity claims
against the Company by the Company's former auditors and underwriters
arising from those shareholder claims, are "equity claims" as defined
in section 2 of the Companies' Creditors Arrangement Act ("CCAA").
Under the CCAA, equity claims are subordinated to the claims of general
creditors. Today, the Court of Appeal affirmed the July 27, 2012
decision of the CCAA Court.
On October 19, 2012, the Company filed an amended Plan of Compromise and
Reorganization ("Plan") and an Information Statement concerning the
Plan. The meeting of the Company's creditors to consider the Plan (the
"Meeting") is scheduled for November 29, 2012.
Further information concerning the Meeting and the Plan, including the
Information Statement and a Plan Supplement, 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. Affected Creditors should periodically check the Monitor's website at
http://cfcanada.fticonsulting.com/sfc for additional reports of the Monitor and any updates or amendments to
the Plan that may arise prior to the Meeting.
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
expectations with respect to timing of the meeting of the Company's
creditors to consider the Plan. 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: actions taken by the
Company's noteholders, lenders, creditors, shareholders, and other
stakeholders to enforce their rights; 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 the CCAA Court, the Company's creditors and
securities and other regulatory authorities; 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