TORONTO (Reuters) - Sino-Forest Corp has asked a Canadian court to extend creditor protection granted to the Chinese forestry company last month until July 9, saying it would create certainty for potential buyers considering a bid for its assets.
The Ontario Superior Court’s current order of protection under Canada’s Companies’ Creditors Arrangement Act expires April 29. The company, accused of fraudulently exaggerating its assets, said the allegations had paralyzed its business.
Sino-Forest’s Toronto-listed shares tanked last June after a short-seller made allegations against it. The company is now battling multiple lawsuits, on top of investigations from regulators and law enforcement authorities.
In filing made to the court on Thursday, Sino-Forest said it started the process of putting its assets up for sale.
Chief Executive Judson Martin told the court Sino’s stakeholders and business partners in China have taken a favorable view of its restructuring plan.
“Sino Forest’s employees appear to have embraced this restructuring as a solution that will provide a future for Sino-Forest companies,” said Martin in an affidavit, adding that no loans have been called by any of the company’s Chinese lenders.
Reporting By Euan Rocha; Editing by Frank McGurty