Court Approves Sino-Forest's Plan of Compromise and Reorganization
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.
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