Thursday, December 27, 2007

NCJ Coverage of PL Bankruptcy

Northcoast Journal Editor Hank Sims does a good job this week of outlining four different "factions" who are going to be vying for control of the reorganization of Pacific Lumber. check it out.

Sunday, December 23, 2007

Reserving Judgement

The recents events in Pacific Lumbers bankruptcy proceedings have once again stirred things up a bit in ol' Humco. PL and their creditors failed to agree on a reorganization plan to save the company (big suprise). Judge Schmidt will now allow other parties to file reorganization plans. The judge says he expects everything to be sorted out by April Fools day, we'll see...

Notable New Players
Included is the newly formed team of Mendocino Redwood Company and Marathon Asset Management, a PL creditor. MRC is another company that loves to publicly give temselves a big pat on the back, much like PL. However, they have a reputation for better logging practices that is deserved, to a certain degree. Judgeing by their management plan, their rate of logging in 1999 was not what I consider "liquidation". Also, it is very important to note in their favor that their management plan states they will not log old growth trees.

On the other hand they still use the logging method "Rehab" to "release" conifers like Doug Fir and Redwood from Tanoaks or other hardwoods. This generally involves clearcutting a stand, or just cutting the valuable trees and then applying herbicides to the hardwood trees. The herbicides used in the forest industry are toxic to Humans, Fish, and other life if they enter the body. They can cause birth defects, sterility and cancer.

In my eyes the FSC sustainabile logging certification lends little or no credibility in and of itself. This is a picture of FSC certified logging in South Africa.

PL's Plan
PL seems to think their plan to sell land for housing development and to sell the Marbled Murrelet Conservation Areas (aka "Ancient Groves", aka MMCA'S) is still the best. (BTW, the groves are not all ancient). How can PL be so sure that someone would buy the MMCA's at their exorbitant asking price of $60,000 an acre? Would some entity who wants to save redwoods be so bullheaded as to offer a purchase before this was all sorted out, thereby strengthening Maxxams position in Humboldt?

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