Pacific Lumber's Plan Proceeds

Wall Street Journal
June 7, 2008

A U.S. bankruptcy judge in Texas said he will confirm a plan to take Pacific Lumber Co. out of Chapter 11 bankruptcy proceedings and be acquired by hedge fund Marathon Asset Management and Mendocino Redwood Co., subject to some modifications.

Marathon and Mendocino, another lumber producer, have said they will pump money into Pacific Lumber and continue operations.

Judge Richard Schmidt rejected a competing proposal from bondholders to auction the 200,000 acres of California redwoods, held by Pacific Lumber subsidiary Scotia Pacific.