Sino-Forest report leaves unanswered questions

Sino-Forest Corp. has released the final report from an independent committee investigating allegations of fraud against the Chinese timberland companybut still several key questions were left unanswered.

The report disputed the allegations of fraud, butalso did not fully address issues raised about the value of its forestry assets or questions about certain relationships between the company and its suppliers. Sino-Forest says ithas hired consultants to determine the value of its assets, but did not give a timeline for when that would be completed.

Sino-Forest said a class action lawsuit has been filed against the company in a New York court on behalf of investors who bought shares on the over-the-counter market and non-Canadian buyers of its debt securities.

The independent committee launched itsinvestigationlast summer after allegations of fraud by short-seller Muddy Waters Research.

Sino-Forest had faced a Tuesday deadline for the report under an agreement with its lenders.

Shares of Sino-Forest have been halted since Aug. 25 of last year, when The Ontario Securities Commission launched an investigation into theallegations.The RCMPis also investigating the company.