Thursday, February 21, 2008

PL Bankruptcy News

The below story is from the Times Standard. Makes me wonder, if Feinstein feels she has to once again say something in defense of the Headwaters deal then perhaps there is a real threat that the Judge may overturn some or all of the infamous deal.

In the latest edition of the Northcoast Journal, Hank Sims makes a correction to his analysis last week of the alternative reorganization plan. Last week he said that the alternative plan would allow Maxxam to keep the "Ancient Groves", now he says that the plan would allow Maxxam to keep all of the groves (6,600 acres) and the 22,000 acre "Redwood Ranch Development" area.


Feinstein: Palco reorganization should honor Headwaters
The Times-Standard
Article Launched: 02/20/2008 01:15:41 AM PST

California Sen. Dianne Feinstein weighed in on the Pacific Lumber Co. bankruptcy Friday in a letter to the court hearing the reorganization proceedings. Feinstein, one of the most deeply involved public officials in the Headwaters Forest negotiations, wrote to the U.S. Bankruptcy Court in Corpus Christi, Texas that any restructuring of the company should adhere to the terms of the 1996 and 1999 agreements. The deal represents an “extraordinarily serious” commitment from the state and federal governments, she wrote.

California and the United States contributed $380 million to acquire 7,400 acres that became the Headwaters Forest Reserve. Another $100 million went to buy two smaller redwood groves.
”The mismanagement of Pacific Lumber should not be allowed to undermine these far-reaching agreements that were carefully negotiated and fully accepted by all the parties,” Feinstein wrote.

Whatever restructuring plan goes forward, Feinstein wrote that it should adhere to the company's habitat conservation plan and its environmental restrictions, that timber production should be allowed to proceed, that the company should continue as a major employer, and that all state and federal laws should be followed.


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