Embattled Chinese forestry company Sino-Forest Corp said on Friday it would seek creditor protection after reaching an agreement with its noteholders.

The company said it would ask the Ontario Superior Court of Justice to approve an agreement that would provide for either the sale of the company to a third party, or restructuring, under which the noteholders would acquire nearly all of its assets.

Shares of the company have been halted since August, following short-sellers' allegations that it had exaggerated the size of its forestry assets in China.

(Reporting By Allison Martell; Editing by Frank McGurty)