Texas judge rules in favor of Mendocino Redwoods Co.

Eureka Reporter
June 6, 2008

The federal judge overseeing the Pacific Lumber Co.'s more than year-long bankruptcy proceeding has approved the reorganization plan offered to the court by the Mendocino Redwood Co. and Marathon Structured Finance Fund.

Judge Richard Schmidt indicated in a court hearing Friday that the plan to auction off the company's 210,000 acres of timber lands offered by the Scotia Pacific's largest creditor -- the Timber Noteholders -- was not confirmable.

The MRC/Marathon plan aims to take possession of the timberlands and Scotia's mill to keep the commercial timber and milling operations in production.