richard chandler The Richard Chandler Corporation believes that credibility in Sino-Forest can be restored by aligning management capabilities and governance policies with the scale and growth potential of this exciting business. Sino-Forest urgently requires strong leadership to address structural challenges and implement strong processes and internal controls. The Richard Chandler Corporation calls upon Sino-Forest to appoint new board members with appropriate experience to drive the changes that are necessary.
Alan Kelly, Senior Advisor to the Richard Chandler Corporation said: "With the introduction of a new leadership and discipline, Sino-Forest can become one of the world’s leading sustainable forestry companies and a Chinese national champion. New leadership with a robust plan based upon the principles of integrity, transparency and accountability will set new governance standards. Such actions are urgently required to meet the company’s responsibilities to shareholders, bondholders and employees. Sino-Forest has great potential and there are many people who believe in the company. They aspire to be supporters of, and partners in, a sustainable, transparent, ethical long term business".
Key elements of the Sino-Forest Recovery Plan will include:
1. Strong leadership through new directors on the board implementing a robust governance program
2. Meeting all bondholder interest obligations promptly
3. Finalising outstanding issues of the Independent Committee investigation
4. Releasing timely financial statements
5. Appointing a new CEO with a clear mandate to strengthen internal controls and business processes
6. Addressing the challenges relating to the BVI structures and AI business model
7. Communicating regularly with shareholders, bondholders and regulators
8. Resolving Ontario Securities Commission concerns with a view to lifting the cease trade order
9. Presenting a new business plan to stakeholders which incorporates a conservative and balanced growth and financing plan
As Sino-Forest’s largest shareholder, the Richard Chandler Corporation requests that any current director of Sino-Forest who is preoccupied with issues of personal legal liability arising from the Muddy Waters allegations step down so that the Recovery Plan may be executed quickly. Any actions by directors, such as the non-payment of bonds, which compromises the going concern capability of Sino-Forest will potentially lead to shareholder actions for negligence.
"Sino-Forest has the potential to be a great company. With shareholders, bondholders, employees and regulators working together, we can turn this potential into reality. Our goal is to make Sino-Forest a benchmark for corporate excellence and integrity so that it can continue its development as one of China’s leading resource-based corporations", said Alan Kelly.