Sino-Forest's restructuring plan gets court nod

Tue Dec 11, 2012 9:13am EST
 
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(Reuters) - Insolvent Chinese forestry company Sino-Forest Corp SNOFS.UL, which has been accused by regulators and investors of fraud, said on Monday that the Ontario Superior Court of Justice approved its reorganization plan.

Under the plan, Sino-Forest will transfer most of its assets to a newly formed entity that will be owned by its affected creditors. The company said it intends to implement the plan not later than January 15.

Sino-Forest is the most prominent in a series of North American-listed companies with Chinese operations whose accounting or disclosure practices came under suspicion last year.

The company filed for bankruptcy protection in April after a short-seller accused it of exaggerating the size of its forestry assets.

Sino-Forest, which has been de-listed from the Toronto Stock Exchange, has been attempting to sell assets to pay off debtholders.

(Reporting by Maneesha Tiwari in Bangalore; Editing by Supriya Kurane)