Friday, November 16, 2007

Pacific Lumber Bankruptcy Mediation Postponed?

Back when Judge Schmidt ordered that Pacific Lumber and their creditors go through mediation to try come up with a mutually agreeable reorganization plan to get PL out of bankruptcy, I thought the 30 day countdown had begun.

Now Maxxam is saying in their quarterly report filed Nov. 14th that "the mediation is scheduled to begin the week of November 26, 2007." and "There can be no assurance that the mediation will be successful."

How reassuring.

This is contrary to what the Times-Standard and the SF Chronicle reported on October 24th. They both made it sound like the full mediation would have to be carried out within 30 days of the hearing.

SF Chron:
The federal Bankruptcy Court judge presiding over the Pacific Lumber Co.'s Chapter 11 process told the bitterly divided parties Tuesday to pick a mediator by Friday and present a unified plan within 30 days.

Schmidt gave the parties until the end of the week to agree on a judge or hired a professional to guide the talks, and lit a short fuse on the matter. Schmidt said he expects key decision makers from the various creditor groups and from Palco to be on hand to craft an agreement.
”In the end give me a mediator, and I want it done in 30 days,” Schmidt said

More From Maxxams Quarterly Report

"The Trustee for the Scopac Timber Notes has also proposed a plan of reorganization with respect to Scopac. The Trustee's plan essentially provides for the rapid liquidation of Scopac."

The Timber Note Holders are the creditors (mainly banks and insurance companies) that loaned money to Pacific Lumber with their timberland as the collateral. Since PL can't pay off the loans the Note Holders want to foreclose on (take possession of) the land. I'd like to see the Note Holders reorganization plan for myself.


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