Editorial: Farewell PALCO, hello HRC Co.
The Eureka Reporter
July 30, 2008
After 18 months of suspense, uncertainty and contention, the Pacific Lumber Company’s bankruptcy saga virtually came to an end yesterday with the takeover of PALCO operations by the Mendocino Lumber Company and the town of Scotia by its partner, Marathon Securitized Finance Fund.
PALCO’s long and storied history in Humboldt County will now be the stuff of memories, but as its president, George A. O’Brien, said in a letter to all employees, “…the new company will be known as Humboldt Redwood Company, but it will always have a PALCO heart.”
The other contenders in the bankruptcy court proceedings, the Timber Noteholders, have appealed the court’s ruling; however, the new HRC is hiring former PALCO employees this week and expects to begin mill operations shortly. The die seems to be cast, and that is good for the employees and their families and for Humboldt County.
It would be hard to find a citizen in the county who is not glad that the days of Charles Hurwitz, the leveraged buyout specialist, are over as is the accelerated tree-cutting that occurred in his reign. The new owners have promised to engage in a conservative harvest model, more akin to that practiced for many years by the original owners, the Murphy family.
We wish the new owners and their team of dedicated former PALCO workers success as they begin a new era of land and lumber stewardship.Posted in PALCO | Tagged HRC, MRC |