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Last updated on April 17, 2014 at 21:23 EDT

Sino-Forest Announces Implementation of Plan of Compromise and Reorganization

January 30, 2013

TORONTO, Jan. 30, 2013 /PRNewswire/ – Sino-Forest Corporation (“Sino-Forest” or
the “Company”) today announced that it has implemented its previously
announced Plan of Compromise and Reorganization dated December 3, 2012
pursuant to the Companies’ Creditors Arrangement Act (Canada) (the “CCAA”) and the Canada Business Corporations Act (as amended, the “Plan”) with an implementation date of January 30,
2013. As previously announced, the Plan was overwhelmingly approved by
creditors at a meeting of affected creditors held on December 3, 2012
and received approval of the Ontario Superior Court of Justice on
December 10, 2012.

Pursuant to the Plan, the Company completed a restructuring transaction
under which, among other things, Sino-Forest transferred substantially
all of its assets, other than certain excluded assets, to a newly
formed entity (“Newco”) (and/or a wholly-owned subsidiary of Newco)
owned by the affected creditors of Sino-Forest in exchange for a
release of the claims of affected creditors against Sino-Forest and its
subsidiaries. The assets transferred to Newco and/or its wholly-owned
subsidiary pursuant to the restructuring transaction included all of
the shares of the Company’s directly owned subsidiaries which own,
directly or indirectly, all of the business operations of the Company. 
The assets transferred to Newco and/or its wholly-owned subsidiary did
not include, among other things, certain litigation claims of the
Company against third parties which were transferred to a litigation
trust (the “Litigation Trust”) established pursuant to the Plan to
pursue such claims on behalf of the affected creditors of the Company
and certain other stakeholders, and certain cash amounts used to fund
the Litigation Trust and certain other cash reserves established under
the Plan.  Pursuant to the Plan, affected creditors with proven claims
against the Company received pro rata distributions of the equity of
Newco, certain new notes issued by Newco and interests in the
Litigation Trust.  In connection with the implementation of the Plan,
the court-appointed Monitor of the Company has issued a Sixteenth
Report concerning the CCAA process and the Plan, which provides
additional details concerning the Plan and Newco (and its wholly-owned
subsidiary) and which is available at the Monitor’s website for the
CCAA proceedings at http://cfcanda.fticonsulting.com/sfc.

In addition, Sino-Forest ceased to be a reporting issuer in each of the
applicable jurisdictions in Canada by order of the applicable Canadian
securities regulators immediately prior to the completion of the
restructuring transaction. All of the outstanding common shares of
Sino-Forest will be cancelled for no consideration on March 4, 2013.

SOURCE Sino-Forest Corporation


Source: PR Newswire