Sino-Forest's restructuring plan gets court nod

Tue Dec 11, 2012 8:37am EST
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Dec 11 (Reuters) - Insolvent Chinese forestry company Sino-Forest Corp, 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 Jan. 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.