Sino-Forest sale plan wins more debtholder backing

TORONTO, June 8 Fri Jun 8, 2012 10:27am EDT

TORONTO, June 8 (Reuters) - Insolvent Chinese forestry company Sino-Forest Corp said on Friday it has won more support from debtholders for its plan to either sell or restructure its assets.

The company, which barely a year ago was the biggest forestry company on the Toronto Stock Exchange in terms of market capitalization, has been accused by regulators and investors of fraud. Its stock, which was halted in August last year, has been de-listed, and the company is now attempting to sell assets to pay off debtholders.

In March, an ad hoc group representing about 40 percent of Sino's senior noteholders agreed to support the proposed sale of assets.

The company said on Friday it now has the support of about 72 percent of noteholders.

On May 31, the Ontario Superior Court of Justice extended Sino's creditor protection until Sept. 28.

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