Mendocino Redwood comes north to air Palco plan
By John Driscoll
March 11, 2008
The Mendocino Redwood Co. is coming to Humboldt to hear questions and concerns surrounding their proposal to reorganize the bankrupt Pacific Lumber Co.
Two meetings will be held Saturday and another on March 18, an effort to simplify the complex restructuring plan filed in U.S. Bankruptcy Court in Corpus Christi, Texas.
“We hope that people can to some extent judge what we say in the context of what we’ve done in Mendocino County over almost 10 years,” said Mendocino Redwood Chairman Sandy Dean.
Palco’s main creditor Marathon Structured Finance Fund has teamed up with Mendocino Redwood, which has proposed to invest in and operate the Scotia sawmill and continue timber operations on Palco’s 210,000 acres in Humboldt County. Mendocino Redwood has promised to seek certification through the Forest Stewardship Council, eliminate traditional clearcutting and reduce logging overall.
Palco has proposed a plan to reorganize both itself and its timber-holding subsidiary Scotia Pacific — although most parties in the case have signaled the plan is effectively dead — and two alternative plans to reorganize the companies separately. The bondholders owed $714 million secured by Scotia Pacific’s land have proposed a quick sale of the property that would achieve market value, but no plan to restructure Palco.
The Unsecured Creditors Committee has recommended that unsecured creditors vote for the Mendocino Redwood plan, and against the other plans. Dean said he hopes creditors will come to the meeting, and said they have an important vote before Judge Richard Schmidt decides in April which plan will be approved to rebuild Palco.
IF YOU GO:
What: Mendocino Redwood Palco plan
* Saturday, 10 a.m., Monday Club, 610 Main St., Fortuna
* Saturday, 2 p.m., Red Lion Hotel, 1929 Fourth St., Eureka
* March 18, 2 p.m., Wharfinger Building, 1 Marina Way, Eureka
John Driscoll can be reached at 441-0504 or email@example.com .Posted in PALCO | Tagged HRC, MRC |