Sino-Forest Spiking over 50% Higher after Company Releases Supporting Evidence Against Allegations From Short Seller

Sino-Forest Corporation

today provided further response to allegations by short seller, Muddy Waters, LLC. The Company believes Muddy Waters' report to be inaccurate, spurious and defamatory. Muddy Waters' self-interest is transparent: to make money from the fall in Sino-Forest's share price on the back of a decline that itself precipitated. Since the report's release, the Company has been working to address the allegations. The Company's Board of Directors is wholly sympathetic to stakeholders who are urging the Company to respond forcefully and quickly. However, the Company wants to respond definitively and it is the Board's fiduciary duty to address these allegations with an unrestricted thorough and independent review, through the Independent Committee that was set up late last week. The Independent Committee has appointed independent legal counsel, appointing Osler, Hoskin & Harcourt LLP to support it in Canada and both Mallesons, (a leading international law firm with offices in Beijing, Shanghai and Hong Kong) and Jun He Law Offices a leading Chinese law firm. The Independent Committee is also expected to announce the appointment of an independent international accounting firm later today. Read more

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