Saturday, February 2, 2008
Multiple Groups Seek Control of Pacific Lumber
Three groups have now submitted competing reorganization plans to the bankruptcy court. Pacific Lumber's plan remains essentially the same. The main noticeable change is that they are now proposing that Marathon Financing, a major PL creditor, be given the Scotia Mill and other facilities. Marathon Financing and Mendocino Redwood Company have already made known their plan to reorganize PL by removing upper management at the company and transplanting Mendocino Redwoods logging practices to Humboldt. The Timber Noteholders represent a majority of the "timber notes" collateralized by forestland. They propose to auction off the company for between $550 and $600 million to "Qualified" buyers including Maxxam. The Noteholders didn't go for the plan proposed by the coalition including Bank of America, The Nature Conservancy and the Community Forestry Team. The Community Team is comprised of people involved with non-profit environmental, forestry and labor groups. Members of the Community Forestry Team have said that they will bid on the company if it goes to auction.
Click here and scroll down to hear the Jan.31st KMUD 6 O'clock news interview with Sandy Dean, president of Mendocino Redwood.
I'll have to wait to post my comments on these plans until later.