Thursday, March 08, 2007

Headlines



60 People Occupied Hsu Presidents Office for an Hour Today. Many wore shirts that said "Stop Academic Cultural & Spiritual Genocide", "Support Native American and Ethnic Studies" and "No More Cuts!" . Eureka Reporter Coverage


PL Bankruptcy Change of Venue Debated in Court.
Times-Standard
North Coast Journal



Maxxam's Britt Lumber Company Fires a Quarter of It's Workers, Dubiously Claims Layoffs are Unrelated to the Bankruptcy



SPI's Owl Creek/Yager Creek Logging Plan Returned To Sender.
Sierra Pacific Industries "Redwood House THP" #1-07-021-HUM has been returned by California Dept. of Forestry. This usually means that plan will have to be drastically changed before CDF will consider it further. This 425 acre logging plan includes cutting of Oldgrowth Douglas Fir and 201 acres of clearctting/rehab that will be followed by herbicide spraying.

Monday, March 05, 2007

Bondholders Will Sue Maxxam Execs If Bankruptcy Case Stays In Texas

From: Bingham McCutchen website. Bingham McCutchen is the lawfirm representing a group of Scopac bondholders who say they own 80% of Scopac timber notes.

[Daily Bankruptcy Review, March 1, 2007 - A group of bondholders say they’ll sue Maxxam Inc.’s top executives for fraud if a bankruptcy judge rules Scotia Pacific (Scopac), a California-based lumber company owned by Maxxam, can proceed with its Chapter 11 case in Texas. According to Daily Bankruptcy Review, papers filed Monday in U.S. Bankruptcy Court in Corpus Christi, Texas, say the bondholders will “hold management personally responsible for their fraudulent misrepresentations” if Judge Richard S. Schmidt decides that Scopac’s place of business is in Texas. Scopac claims its bankruptcy case was properly filed in Corpus Christi on January 18 because its principal place of business is in the “southern district of Texas.” However, the bondholders, who are represented by Hartford partners Evan Flaschen and Greg Nye and counsel Kurt Mayr, say that claim is contradicted by documents Scopac signed off on in 1998 when it issued the bonds, which claim its principal offices was in Scotia, Calif. According to bondholders, Scopac is either misrepresenting its principal place of business to the court or it has always misrepresented its place of business to the bondholders. Flaschen said the bondholders intend to sue Scopac managers and board of directors as well as Maxxam for fraud. This story also ran on the Dow Jones Newswire.]

Sunday, March 04, 2007

Re: The Future of PL/Scopac Land Holdings

As bankruptcy lawyer Peter Clapp made clear at the Fortuna Riverlodge the other night, the crux of the issue regarding Pacific Lumbers land holdings is;

A: What is the property value worth?
If the property is worth less than the debt the shareholders (majority Maxxam) lose control. If the land is worth more they will stay in control.

B: Feasibility
What is a sustainable rate of harvest? Can the company come up with enough funds to pay the debt? Will the new buisness strategy be acceptable to enviro’s thereby avoiding expensive lawsuits and direct action such as road blockades etc.?

Through researching information from logging plan documents, a timber practices monitor has come up with some figures that may answer some of these questions.

Lacking the time to simplify the info right now I present excerpts for readers to analyze for themselves. [words in brackets are mine]

"I found that ... something less than 7.5% (14,835 acres) is accessible LSF [late seral forest]. Late Seral Forest: Areas with trees that average over 24 in DBH [diameter at breast hight] and have begun developing a multi storied structure. It occurs in redwood stands as young as 40 years but is usually found in stands more than 50 years old.

We can also assume a significant portion of this 7.5% is in riparian areas (and therefore logging is restricted there). I assume that some portion of the mid successional (36%, 71,207 acres) is also harvestable, but only marginally so. Overall, about 1/2 0f their land is trees less than 11 in dbh (~20 years). not good.

Mid Seral Forest (Mid-Sucessional is not defined but I assume these are the same): Areas with trees 12-24 inches DBH. Stands are generally 20-50 years old and lack a shrub layer."


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