Friday, January 13, 2012 -- 14:50
Sino-Forest (TRE.TSE), a Chinese timber company faced with allegations of fraud, said a group of its bondholders had agreed to waive a default on senior notes due in 2014 and 2017, reducing the company's risk of bankruptcy, Bloomberg reported. "It keeps Sino-Forest out of bankruptcy for the time being," said Geof Marshall of Toronto-based CI Investments. Sino-Forest is under investigation by the Ontario Securities Commission and the Royal Canadian Mounted Police for overstating its timber assets in China, allegations first put forward by research firm Muddy Waters in June. Sino-Forest said yesterday it will make a final report by January 31 on a special investigation by a committee of its directors regarding the allegations, and that it is also negotiating an extension of the OSC's share-trading suspension, which was scheduled to end January 25.