Re Sino-Forest Corporation, 2012 ONSC 5011

Case Summary

In proceedings under the Companies’ Creditors Arrangement Act, the court considered relief relating to the filing of a proposed plan of compromise or arrangement and the issuance of a meeting order for creditor voting. The parties agreed that the relief sought should be limited to matters concerning plan filing and the convening of a creditors’ meeting. The court emphasized that the meeting order did not determine the applicable test for plan approval, the court’s jurisdiction to approve the plan in its present form, compliance with the CCAA, the fairness or reasonableness of the plan, the validity or quantum of claims, or creditor classification for voting. The endorsement further clarified that no party’s right to oppose a future sanction motion would be restricted.

SUPERIOR COURT OF JUSTICE – ONTARIO

(COMMERCIAL LIST)

COURT FILE NO.: CV-12-9667-00CL
DATE: 20120831

RE: IN THE MATTER OF THE COMPANIES’ CREDITORS ARRANGEMENT ACT , R.S.C. 1985, c. C-36, AS AMENDED

AND IN THE MATTER OF A PLAN OF COMPROMISE OR ARRANGEMENT OF SINO-FOREST CORPORATION, Applicant

BEFORE: MORAWETZ J.

COUNSEL: Jennifer Stam, for the Monitor

HEARD: AUGUST 31, 2012

ENDORSEMENT

[ 1 ] The parties have reached agreement that the requested relief should focus on the issues relating to Plan Filing and a Meeting Order. This will result in a modified order from that originally contemplated.

[ 2 ] The Meeting Order is being made on the basis that there has been no determination of (a) the test for approval of the Plan, including (i) the jurisdiction to approve the Plan in its current form; (ii) whether the Plan complies with the CCAA; and (iii) whether any aspect or term of the Plan is fair and reasonable, (b) the validity or quantum of any claims; and (c) the classification of creditors for voting purposes.

[ 3 ] Further, nothing in the Order should be interpreted as preventing or restricting or otherwise limiting the ability of any party to oppose a motion for sanction of the Plan.

[ 4 ] Monitor’s counsel to attend on Tuesday, September 4, 2012 with a form of Order for my review.

MORAWETZ J.

Date: August 31, 2012

Re Sino-Forest Corporation, 2012 ONSC 5011

Case Summary

SUPERIOR COURT OF JUSTICE – ONTARIO

ENDORSEMENT

This Proceeding

Judge

Parties

Areas of Law