January 31.
That’s when we should get the final report from the independent committee looking at Muddy Water’s allegation that Sino-Forest, a purported tree-flipper, is actually a $5bn fraud.
You’ll remember that the interim report from the committee, published in November, was supposed to have cleared the company of wrong-doing, according to chief executive Judson Martin.
Well, he’s certainly changed his tune since then.
That comic claim of clean health was quickly followed by Sino’s admission that it couldn’t add its Q3 numbers up on time and was set to default on its debt. Bringing a new set of actors into this long-running farce…
…the Ad Hoc Noteholders.
Hapless investors in Sino’s various bond issues have now got themselves a committee, which has decided to do the obvious: defaults have been temporarily waived while the report from the other committee (the independent directors one) gets finished and everyone gets a better picture of what’s been going on at this company – a mess that stretches from Toronto to China and on to Suriname.
In return, Sino’s executives have promised to sit on their hands and, most importantly, NOT TOUCH ANY OF THE REMAINING CASH IN SINO’S BANK ACCOUNTS. Details here.
Related links:
Sino-Forest May Go Private, Seek Merger as Martin Tries to Exit ‘Morass’ – Bloomberg
Sino-Forest still has many questions to answer – FT Alphaville