Sino-Forest Announces Revised CCAA Plan Implementation Date and Further Reduction of Unresolved Claims Reserve
TORONTO, Jan. 21, 2013 /PRNewswire/ - Sino-Forest Corporation ("Sino-Forest" or the "Company") today announced that the Plan Implementation Date, the date on which the Company's CCAA Plan of Compromise and Reorganization dated December 3, 2012 (the "Plan") is to become effective, has been extended with the consent of the Initial Consenting Noteholders and the Monitor and is now expected to occur on January 23, 2013. All capitalized terms not otherwise defined herein are as defined in the Plan.
In addition, as a result of the addition of another defendant to the list of Named Third Party Defendants under the Plan, the amount of the reserve for Unresolved Claims against Sino-Forest to be created under the Plan (the "Unresolved Claims Reserve") has been further reduced from $28.5 million to an aggregate amount of $1.7 million. As a result of the further reduction in the Unresolved Claims Reserve, more than 98.5% of the Newco Notes and Newco Shares will be distributed to Affected Creditors of Sino-Forest with Proven Claims in connection with the implementation of the Plan.
This news release contains forward-looking information within the meaning of applicable securities laws ("forward-looking statements"), including forward-looking statements relating to the expected timing of the Plan Implementation Date. 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; 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 be 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