DJ Ontario Regulator To Hold Hearing On Extending Sino-Forest Trading Halt
13 Jan 18:06
By Ben Dummett
Of DOW JONES NEWSWIRES
TORONTO (Dow Jones)--The Ontario Securities Commission said late Friday it
will hold a hearing Jan. 23 to consider if it is in the public interest to
extend the trading halt on Sino-Forest Corp.'s (TRE.T) stock to April 16.
The timber company, which operates in China, but is listed on the Toronto
Stock Exchange, has been struggling for survival under a cloud of fraud
allegations since the summer. The OSC first halted the stock in August to
investigate allegations the company overstated the value of its timber assets.
In September, the halt was extended to Jan. 25 to give the commission more time
to complete its probe.
Earlier this week, Sino-Forest said it was in talks with the OSC to further
extend the cease trade order beyond Jan. 25, as it tries to work with its
bondholders to come up with a strategic plan that will help it maximize the
value of its assets and avoid defaulting on some of its debt.
The strategic plan is expected to provide a timeline for the possible sale of
assets or the issuing of equity. As part of the agreement with the noteholders,
Sino-Forest will make the $9.775 million interest payment on its 2016
convertible notes that was due on Dec. 15, and has agreed to pay, when due,
interest on its convertible notes due 2013 and 2016 and on the two series of
senior notes.
-By Ben Dummett; Dow Jones Newswires; 416-306-2024; ben.dummett@dowjones.com
(END) Dow Jones Newswires
01-13-12 1806ET
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