Ontario court overseeing Sino-Forest approves CCAA restructuring plan

TORONTO – The court overseeing the restructuring of troubled Chinese forestry company Sino-Forest Corp. has approved a plan that will see its creditors take control of its assets under the Companies’ Creditors Arrangement Act.

The company says if the remaining conditions are satisfied or waived as expected, it intends to implement the plan no later than Jan. 15, 2013.

Sino-Forest’s creditors approved its restructuring plan last week.

Comite Syndical National de Retraite Batirente, Northwest and Ethical Investments and Trimark Investments argued it would deprive them of the right to opt out of the class-action lawsuits against Sino-Forest, which collapsed amid allegations of being a massive fraud.

Sino-Forest was first accused last year of being a massive Ponzi scheme by Muddy Waters Research, prompting investigations by the Ontario regulator and the RCMP.

The company and several former executives have since also been accused of lying to investors and attempting to mislead investigators.