Reuters: Bankruptcy News: UPDATE 1-Sino-Forest says ex-CEO leaves firm, three fired

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UPDATE 1-Sino-Forest says ex-CEO leaves firm, three fired Apr 17th 2012, 19:16 Tue Apr 17, 2012 3:16pm EDT * Former CEO Allen Chan resigns from company * CFO David Horsley resigns from exec job, to stay on * Three other executives terminated TORONTO, April 17 (Reuters) - Embattled Chinese forestry company Sino-Forest Corp said on Tuesday its former CEO had quit his final role at the company and three other executives were fired after Canada's top securities regulator issued enforcement notices against them. Sino-Forest said Allen Chan, who stepped down as chairman and chief executive in August, had resigned from his position as "founding chairman emeritus". Chief Financial Officer David Horsley also resigned from his executive position, but will continue as an employee to assist with restructuring, the company said. Sino-Forest terminated three other executives that had been placed on administrative leave in August. The Ontario Securities Commission (OSC) served some current and former Sino Forest executives with enforcement notices earlier this month, and notified the China-focused company it had found that it had run afoul of sections of securities law pertaining to fraud. The regulator had launched a probe into Sino Forest after short seller Carson Block and his firm Muddy Water accused the company in June of exaggerating the size of its forestry assets. The company's internal investigation into the fraud allegations proved inconclusive. Sino-Forest was granted protection from its creditors after it argued that the allegations against it had paralyzed its business. The case is the most prominent among a spate of accounting scandals that have tainted the image of Chinese companies listed in North America. The accusations have prompted trading halts, delistings, lawsuits and regulatory probes in both the United States and Canada. In light of the departures, the company said it will move to give more powers to its court-appointed monitor, FTI Consulting Canada Inc, under the Companies' Creditors Arrangement Act. Link this Share this Digg this Email Reprints

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