TORONTO, Sept. 26, 2012 /CNW/ - Sino-Forest Corporation ("Sino-Forest"
or the "Company") announced today that the Company received a second
enforcement notice (the "Second Enforcement Notice") from staff of the
Ontario Securities Commission (the "OSC" or the "Commission"). The
Second Enforcement Notice adds a further allegation similar in nature
to the allegations in the statement of allegations in relation to the
Company and others posted on the OSC's website on May 22, 2012 (http://www.osc.gov.on.ca) (the "Original Statement of Allegations").
As previously announced, on May 22, 2012, staff of the Commission
commenced proceedings before the Commission against the Company and six
of its former officers. In the notice of hearing and Original Statement
of Allegations, OSC staff allege that the Company breached Ontario
securities laws and acted in a manner that is contrary to the public
interest by providing information to the public in documents required
to be filed or furnished under Ontario securities laws which was false
or misleading in a material respect contrary to section 122 of the
Ontario Securities Act (the "Act") and by engaging or participating in
acts, practices or a course of conduct related to its securities which
it knows or reasonably ought to know perpetuate a fraud on any person
or company contrary to section 126.1 of the Act.
Enforcement notices issued after proceedings have been commenced
typically precede a possible amendment to the statement of allegations,
and provide the respondents with an opportunity to make representations
before a decision is taken by staff of the Commission to amend a
statement of allegations.
The Company is reviewing the Second Enforcement Notice and considering
what steps if any are appropriate for the Company to take in response
to the Second Enforcement Notice.
SOURCE: Sino-Forest Corporation
For further information:
All inquiries regarding the Company's proceedings under the Companies' Creditors Arrangement Act ("CCAA") should be directed to the Monitor, FTI Consulting, via email at: email@example.com, or telephone: (416) 649-8094. Information about the CCAA proceedings, including copies of all court orders and the Monitor's reports, are available at the Monitor's website http://cfcanada.fticonsulting.com/sfc.