Quantcast
Last updated on April 19, 2014 at 18:42 EDT

Sino-Forest Announces Anticipated CCAA Plan Implementation Date and Reduction of Unresolved Claims Reserve

January 11, 2013

TORONTO, Jan. 11, 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, is expected
to be on or about January 17, 2013.  This date has been selected with
the consent of the Initial Consenting Noteholders and the Monitor (all
capitalized terms not otherwise defined herein are as defined in the
Plan).  In addition, on the consent of the Ontario Class Action
Plaintiffs, the Company, the Monitor and the Initial Consenting
Noteholders in accordance with 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 reduced from $158.5 million to
$28.5 million as a result of (a) certain agreements reached with
certain Eligible Third Party Defendants who have agreed to become Named
Third Party Defendants pursuant to the Plan; and (b) the reduction of
the Indemnified Noteholder Class Action Claim Limit as it relates to
the remaining Third Party Defendant who is not a Named Third Party
Defendant.  As a result of the reduction in the Unresolved Claims
Reserve, approximately 98.5% of the Newco Notes and Newco Shares will
be distributed to Affected Creditors of Sino-Forest with Proven Claims
on 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 Sino-Forest’s
intention to implement the Plan on or about January 17, 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; 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


Source: PR Newswire