Ontario court dismisses appeal by Sino-Forest's former auditors against July court order relating to shareholder class action and indemnity claims
November 23, 2012
– Sino-Forest Corporation ("Sino-Forest" or the "Company") announced that the Court of Appeal for Ontario today dismissed an appeal by the Company's former auditors and underwriters from an order made by the Ontario Superior Court of Justice (the "CCAA Court") on July 27, 2012.
On July 27, 2012, the CCAA Court made an order that certain shareholder class action claims against the Company, and certain indemnity claims against the Company by the Company's former auditors and underwriters arising from those shareholder claims, are "equity claims" as defined in section 2 of the Companies' Creditors Arrangement Act ("CCAA"). Under the CCAA, equity claims are subordinated to the claims of general creditors. Today, the Court of Appeal affirmed the July 27, 2012 decision of the CCAA Court.
On October 19, 2012, the Company filed an amended Plan of Compromise and Reorganization ("Plan") and an Information Statement concerning the Plan. The meeting of the Company's creditors to consider the Plan (the "Meeting") is scheduled for November 29, 2012.
Further information concerning the Meeting and the Plan, including the Information Statement and a Plan Supplement, is available on the Monitor's website at http://cfcanada.fticonsulting.com/sfc, the Company's website at www.sinoforest.com, and on SEDAR at www.sedar.com. Affected Creditors should periodically check the Monitor's website at http://cfcanada.fticonsulting.com/sfc for additional reports of the Monitor and any updates or amendments to the Plan that may arise prior to the Meeting.
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 expectations with respect to timing of the meeting of the Company's creditors to consider the Plan. 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: actions taken by the Company's noteholders, lenders, creditors, shareholders, and other stakeholders to enforce their rights; 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 the CCAA Court, the Company's creditors and securities and other regulatory authorities; 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.