Mr Murray was prosecuted by the Securities and Futures Commission ("SFC") in Hong Kong, in January 2002, for admitting to two breaches of the Securities (Disclosure of Interests) Ordinance for failing to report in a timely manner the purchase of 16,000 shares in Hutchison Whampoa Limited in June 2000, a company Mr Murray was a Non-Executive Director of at the time, and was fined a total of HK$8,000. However, the SFC did recognise that he had no intention to conceal the purchase and that the failure to report in a timely manner was the result of a breakdown in the personal arrangement which Mr Murray had specifically made for reporting share purchases.
Mr. Murray was a Non-Executive Director of Sino-Forest Corporation ("Sino-Forest"), a forest plantation operator with its headquarters in Hong Kong and its principal operations in the People's Republic of China. Sino-Forest was listed on the Toronto Stock Exchange. Following accusations of misconduct made against certain former members of management of Sino-Forest (not including Mr Murray), the company was unable to issue current financial reports, which were necessary to avoid defaults under the company's senior and convertible notes. As a result, on 30 March 2012 Sino-Forest filed for creditor protection and to reorganize in Ontario, Canada, under the Companies' Creditors Arrangement Act (Canada) ("CCAA").
On 10 December 2012, and with the overwhelming support of its creditors, the Ontario court approved a plan of compromise and reorganisation (the "Plan") under the CCAA, which took effect from 30 January 2013. The Plan involved the transfer of substantially all of Sino-Forest's assets, other than certain excluded assets, to a newly formed entity (Emerald Plantation Holdings Limited) owned by the affected creditors of Sino-Forest (the "SF Creditors"), in proportion to the amounts outstanding to each of the SF Creditors, in exchange for a release of the claims of the SF creditors against Sino-Forest and its subsidiaries. The SF Creditors were comprised primarily of holders of approximately US$1.8 billion of outstanding senior and convertible notes issued by Sino-Forest and providers of other loans, amounting to approximately $70.5 million. The Plan also provided a mechanism by which Ernst & Young, Sino Forest's auditor, will pay C$117 million to shareholders and debt security holders of Sino-Forest.
There is no further information to be disclosed pursuant to Schedule 2 paragraph (g) of the AIM Rules.