Class action likely against Sino ForestThursday 22 Dec 2011 One of Canada’s largest pension funds has joined a lawsuit seeking millions in compensation from Sino-Forest Corp., its management, directors, auditors and a slew of Bay Street firms that helped the scandal-plagued forestry firm raise capital from investors.The British Columbia Investment Management Corp. (BCIMC), which has $90-billion in assets under management and is an agent of the provincial government, has joined a proposed class action lawsuit led by Toronto legal firm Kim Orr Barristers P.C. and Milberg LLP of New York City, according to documents filed with the Ontario Superior Court of Justice. BCIMC is, by far, the largest single investor to commence legal action against Sino-Forest, which was once the most valuable forestry company listed on the Toronto Stock Exchange, boasting a market value of more than $6-billion before fraud allegations made by U.S. short-selling firm Muddy Waters caused the stock to collapse in July. The BCIMC legal action caps a brutal week for Sino-Forest, which is now teetering on the brink of collapse. Last week, Sino-Forest warned it could not file its financial results and expects to be tipped into default by holders of its $1.8-billion in debt. Sino-Forest’s largest shareholder, Singapore’s Richard Chandler Corp (Mr Chandler is a New Zealand investor), is demanding that the Sino-Forest board of directors resign and that the company’s new chief executive officer, Canadian Judson Martin, be sacked. Chandler and Sino-Forest’s second largest shareholder, Davis Advisors, are demanding that the company stop preserving cash and make a $10-million interest payment on its debt due 15 December. Source: the Globe and Mail More related to this story: • Key Sino-Forest investor says replace CEO, directors • Sino-Forest’s largest shareholder 'disappointed' • Moody’s withdraws Sino-Forest rating |
Copyright 2004-2024 © Innovatek Ltd. All rights reserved. |