Thursday, August 17, 2006

Old Growth Logging Update

As of this tuesday, SPI had not filed a start of operations on the Windmill logging plan in Davis Creek and Bear River. The planned logging will level 129 acres of rare coastal Old Growth Douglas Fir forest. Much of the area will then be bulldozed and burned or sprayed with herbicides.

Pacific Lumbers proposed Old Growth Redwood logging plan in Bear Creek will go to second review soon. This is one of the last steps before logging plan approval. The plan is called “Pitchfork” #1-06-098. The areas to be logged are full of Marbled Murrelet habitat and located on many steep unstable slopes.

Making Debt Look Good

"I've got to tell you I'm elated for every member of this company,” said former Pacific Lumber President Robert "Hatchet Man" Manne regarding PL's newly aquired $85 million in debt and at least $135 million in credit.

”We're about to turn another page,” he said. “We now have more money to rebuild things and get this back on track.”

Manne said that Palco is in a good position now, and that the principal payment of more than $9 million was actually ahead of schedule. -Times-Standard

A week after this cheerful announcement Manne announced his resignation.

"This is the man who came in to finish the liquidation and conversion of a proud healthy company with four mills and nearly half of its timber in old growth, reducing it down to a company on life support, with just one small-log mill, virtually no old-growth timber, and even more debt than when he arrived." - Mark Lovelace of the Humboldt Watershed Council.

"The Scotia mill, the Britt mill, the co-generation plant, the trucks and the town of Scotia are all on the hook for $135 million in credit. The new liquidity providers are now first in line for the company's assets, ahead of the company's workers, its contractors and even the noteholders."

"Palco is in a hole and they need to stop digging, but instead Manne just bought the company a bigger shovel as a parting gift."

That pretty much sums it up for now.

Monday, August 14, 2006

Another Look At A Pacific Lumber Barbecue

A recent Eureka Reporter article seems, at first glance, to insinuate that Pacific Lumber threw a welcoming party for their new CEO.

What better way to get the family together than to have a barbecue?

That’s what the Pacific Lumber Co. did a little more than two weeks ago in a Welcome Wagon-type get together for its new president and chief executive officer, George A. O’Brien.
( hand picked by Maxxam)

Upon further inspection of the article it starts to appear that O'Brien himself threw the party

“It was all pretty simple; I just wanted the people to get to know me,” O’Brien said, taking time from his almost nonstop schedule. “I wanted to get to know them, to shake their hands, to answer their questions.”

“I wanted to let them know I came here for a reason, that I truly believe PALCO has a future. They needed to know that, they needed to know that I certainly would not have left Savannah for Scotia if I didn’t believe in the future of this company.”

Here at the end of the article, reporter Mike Morrow begins to face reality

His welcome wagon-type introduction behind him, O’Brien continues to reach out to his employees and to residents of his new community. Last week, he attended a community forum relating to the annexation of Scotia and Rio Dell.

Seems pretty clear now, it was "his...introduction" and he "continues to reach out" meaning that the barbeque was his first effort to "reach out".

His second? Attending a community forum regarding the efforts of PL management to offload the burden of residential Scotia onto neighboring Rio Dell.

Some outreach there, really from the heart, there's no way that could be considered part of your responsibilties as PL's CEO.

O’Brien took the place of Robert Manne, PL's former CEO of four and a half years. In parting Manne said "We’ve been spending the last four years sort of shrinking the company and now we are getting ready to (announce) some new items”

Coming soon, further inspection of Mannes resignation and the media blitz that preceded it.

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