o Sino-Forest's restructuring of $1.8 billion in bonds
was the first time a Chinese company underwent restructuring
under Canada's Companies Creditors Arrangement
o Bondholders managed to secure Sino-Forest's PRC
assets across eleven provinces in China
o Class action suits are ongoing against other involved
parties; creditors are disputing Ernst & Young's CA$117
million settlement as Sino-Forest auditor. The Ontario
Securities Commission is also taking action against the
The restructuring process of Toronto-listed Chinese forestry
company Sino-Forest represents the first time a Chinese company
underwent restructuring under Canadian law.
scathing June 2011 Muddy Waters report deemed
Sino-Forest a "multi-billion dollar Ponzi scheme," resulting in
its default on two sets of bond payments: the company had $1.8
billion in outstanding bonds.
The fraud accusations against Sino-Forest and its subsequent
default are often used as an argument for increased scrutiny of
the accounting practices of Chinese companies listed...