Appeals court denies stay on Palco plan
July 29, 2008
The 5th U.S. Circuit Court of Appeals has denied the Pacific Lumber Co.’s largest creditors’ latest bid at delaying the ordered reconstruction of the company.
Acting on an emergency request by bond holders filed Monday to reconsider a stay it denied last week, the court ruled quickly. The order should allow the Mendocino Redwood Co. and Palco creditor Marathon Structured Finance Fund to close the deal and begin rebuilding the company.
The U.S. Bankruptcy Court in Corpus Christi, Texas has already ruled that the parties must wrap up the deal, or face contempt.
At this point, the most important remaining issue is for Palco subsidiary Scotia Pacific to sign over the 210,000 acres of timberland to Mendocino, and for some $510 million to be transfered to the bond holders.Posted in PALCO | Tagged HRC, MRC |