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  "documentTitle": "Sino-Forest Corporation (TRE)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2011-06-02 00:00:00",
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  "notes": "The slide presents a bearish investment thesis, calculating potential recovery values under different asset accessibility assumptions.",
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      "text": "Versus the current outstanding offshore debt of $1.893 Billion, the “real” best case net asset value is around $92 million. Divided by the current number of shares outstanding – 245 million - that leaves a share value of approximately C$0.38 at current exchange rates.",
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      "text": "share value: C$0.38",
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      "text": "TRE was engaged in aggressive fraud from the time it went public. Between 1994 and 1996, it generated between 65% to 77% of its reported revenues from an equity joint venture with the Leizhou Forestry Bureau. All of these numbers were fabricated.",
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      "text": "If the assets in China were accessible, the first thing that creditors would have to do would be sell the small forestry assets... giving us a total recovery bull case of $467 million.",
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      "text": "The offshore cash is not simply calculated by subtracted cash raised from cash moved into China... (Non-injected cash minus management compensation minus offshore acquisitions).",
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      "text": "This gives us an asset base of $1.967 Billion in the best case... that leaves a share value of approximately C$0.38 at current exchange rates.",
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      "text": "Using the above bull case of offshore assets, we estimate recovery for bondholders would be approximately 80 cents on the dollar... The recovery could be higher if less money was put into China.",
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      "kind": "paragraph",
      "text": "Our belief is that the true recovery would be far lower, but without the aid of law enforcement, we will never really know how much money is there or where it went.",
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      "kind": "paragraph",
      "text": "Due to the time involved to actually change the legal representatives and liquidate collateral onshore... historical precedent should show that there is little that can be done with onshore assets.",
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      "kind": "source-note",
      "text": "4 Appendix A5 – Chinese and English translations available.\n5 China has two classifications of Sino-Foreign joint ventures...",
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      "text": "Scenario 1: Assets in China are accessible to creditors and shareholders",
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      "kind": "title",
      "text": "I. TRE Was Always a Fraud.",
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      "text": "Scenario 2: Onshore Recovery of Zero.",
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