(Reuters) Sino-Forest TRE.TO, a China-focused forestry company accused of exaggerating the size of its assets, said holders of the its notes due in 2014 and 2017 have agreed to not force the company to default on the debt.
The Toronto-listed company was in breach of the senior note indentures after it failed to release third-quarter results on a timely basis.
“Following extensive discussions with an ad hoc committee of noteholders, holders of a majority in principal amount of the company’s two series of senior notes agreed to waive the default,” the company said in a statement.
Sino-Forest said it has agreed to make certain interest payments on its outstanding debt and will pay a waiver fee of 1 percent of the principal amount to debt holders.
The company was up until recently the largest forestry stock listed on the Toronto Stock Exchange. It has been reeling since June, when short seller Carson Block and his Muddy Waters firm accused it of exaggerating the extent of its Chinese assets.
Reporting By Cameron French; editing by Rob Wilson