May 1st 2008

By Shirleen Dorman
Dow Jones Newswires
May 1, 2008

The board of Maxxam Inc. (MXM) agreed to support a reorganization plan to resolve a Chapter 11 case for Pacific Lumber Co.

Maxxam, the parent company of Pacific Lumber, said the plan was proposed by Mendocino Redwood Co. LLC and Marathon Structured Finance Fund LP.

Maxxam, a Houston company with interests in forest products, real estate investment and development and racing operations, said it believes "this plan represents the best outcome" for Pacific Lumber and its workers.