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Sino-Forest receives notices of termination from Mandra Forestry

July 6, 2009

TORONTO, July 6 /PRNewswire-FirstCall/ – Sino-Forest Corporation (TSX: TRE), a leading commercial forest plantation operator in China, announced today that it has received notices from Mandra Forestry Finance Limited (“Mandra”) purporting to terminate the Operating Management Agreement and Master Sales Agreement, each dated May 11, 2005, between Mandra and a subsidiary of Sino-Forest. Management of Sino-Forest believes that such termination notices are without merit and intends to dispute the validity of such notices. However, if the notices are not withdrawn by Mandra and if it is ultimately determined by a court or through arbitration that the termination notices are valid, the option currently held by Sino-Forest to purchase additional equity in Mandra would be terminated. Such option and the commercial relationship between Sino-Forest and Mandra are discussed in further detail in Sino-Forest’s continuous disclosure documentation available on www.sedar.com.

About Sino-Forest Corporation

Sino-Forest Corporation (the “Company”) is a leading commercial forest plantation operator in China. Its principal businesses include the ownership and management of forest plantation trees, the sale of standing timber and wood logs, and the complementary manufacturing of downstream engineered-wood products. The Company’s common shares have traded on the Toronto Stock Exchange under the symbol TRE since 1995.

Please note: This press release contains projections and forward-looking statements regarding future events. Such forward-looking statements are not guarantees of future performance of the Company and are subject to risks and uncertainties that could cause actual results and company plans and objectives to differ materially from those expressed in the forward-looking statements. Such risks and uncertainties include, but are not limited to: changes in China’s and international economies and in currency exchange rates; changes in market supply and demand for the Company’s products, including global production capacity and wood product imports into China; changes in China’s political and forestry policies; changes in climatic conditions affecting the growth of the Company’s trees; competitive pricing pressures for the Company’s products; and changes in wood acquisition and operating costs.

SOURCE Sino-Forest Corporation


Source: newswire



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