Sino-Forest Corporation – 40
May 14, 2012
The plaintiffs have been granted permission to proceed with two motions in the class action, despite the insolvency proceedings. On May 17, 2012, the court will hear plaintiffs have a motion to approve the CFI litigation funding agreement (mentioned in previous updates). The court will also hear the plaintiffs’ motion to approve a notice relating to a tentative settlement with Pöyry (Beijing) Consulting Company Limited. The notice would explain that there will be a hearing before the court to consider whether to approve the settlement, which interested persons could attend. The hearing will likely be in the Fall. The notice, if approved, will be posted in a latest development.
The other major development relates to the Sino-Forest insolvency proceeding. Today, the court approved a procedure for claims against Sino-Forest and its directors and officers. Significantly, the order provides that the plaintiffs are authorized to file one proof of claim in respect of the substance of the matters in this class action. It states that members of the class may rely on that one proof of claim and are not required to file individual proofs of claim for the claims forming the subject matter of this class action.