Pacific Lumber Bankruptcy



Humboltd County District Attorney Paul Gallegos letter to the California Supreme Court (PDF)

Peoples Pettition for Review (PDF)

Sierra Club Letter to the Supreme Court (PDF)

Pacific Lumber et al Letter to the Honorable Chief Justice Ronald M. George (PDF)

Pacific Lumber et al Letter to the Honorable Chief Justice Ronald M. George (PDF)

Palcos Responds



2.14.08 The Cram Down - North Coast Journal (regarding the reorganization plans on the table)

2.7.08 ‘Whistle blower’ claims against Palco settled for six bucks

12.22.07 Gap family offers millions to help revive Humboldt logging firm -San Francisco Chronical

9.22.07  "PALCO severance payments denied"  Eureka Reporter


9.12.07 Palco Creditors push bankruptcy resolution   Times Standard

June 20, 2007


For Immediate Release                                                                          


Contact:            Tracy Katelman, ASJE   (707) 498-4481  

                        Mark Lovelace, HWC      (707) 822-1166 



Re:       PL Bankruptcy Workshop Saturday, 9-12 at the Fortuna Veterans Memorial Hall

Workshop to Focus on Filing Claims & Reorganization



Fortuna, CA--  The Alliance for Sustainable Jobs and the Environment (ASJE), the Humboldt Watershed Council (HWC) and the Central Labor Council of Humboldt and Del Norte Counties (CLC) will present their second public workshop addressing issues involved in the Pacific Lumber bankruptcy case this Saturday, June 23, from 9am to 12 noon at the Fortuna Veteran’s Memorial Hall, 1426 Main Street.


The Saturday morning event will be divided into two sessions with the 9 am to 10 am hour concentrating on the nuts and bolts of filing a “proof of claim” form before the fast approaching July 17 final deadline.  This session is for any former or current employee, vendor, contractor or other individual or business owed money by Pacific Lumber or any of its affiliates: Scotia Pacific, Britt Lumber, Scotia Inn, Salmon Creek, or Scotia Development. In addition to a line-by-line explanation of the form, information about how to check current claims and how to amend them if they are incorrect will be presented. Current claim schedules and blank claim forms are available at


From 10 am to 12 noon, the subject will be Bankruptcy 201; a follow-up to the highly successful session of Bankruptcy 101 presented this past March to a full house of over 120 participants at the Fortuna River Lodge. This updated presentation will again feature veteran bankruptcy attorney and law professor Peter Clapp. In addition to an introduction and update on the status of the case since March, issues addressed will include valuation of the assets, the development and approval of the reorganization plan, and a question-and-answer session.


“We are very excited to be bringing this information to the community,” said ASJE Executive Director Tracy Katelman.  “The first workshop seemed an historic occasion as we were able to bring together Humboldt neighbors who’ve been at odds for decades and find common ground to navigate our way through this trying time.  We are inspired by the potential for a new, Maxxam-free Pacific Lumber to come out of this reorganization with stable employment and a truly sustainable forest management plan,” she concluded.


Participants are urged to arrive early.  Coffee, juice, bagels and fruit will be provided.  Spanish translation help will be available on request. 


For more information, contact the HWC at 822-1166 or ASJE at 498-4481.  Extensive information on the bankruptcy, including court documents, media stories, and claim forms are available on the ASJE website, PL Bankruptcy pages at





#923 Order resetting severance hearing.pdf

4.26.07  A July 17th date has been proposed for filing claims!

1 - Motion (10 pgs).pdf

2 - Proposed Order (4 pgs).pdf

3 - Exh A POC Form (2 pgs).pdf

4 - Exh B Notice of Bar Date (4 pgs).pdf

Thanks to Mark Lovelace from the  Humboldt Watershed Council for bringing this important information.

4.21.07  Pacific Lumber wins again!  Texas Judge rules that the proceedings will remain in Texas.  The Judge even threatened sanctions against those that would dare to argue that PL was "venue shopping" when they created Scotia Development.  Anybody wonder why PL wants this heard in Texas?  Unfortunately, what is right and moral has absolutely nothing to do with what is legal in our system of "justice."  Whoever can afford the "best" lawyers wins.  Be prepared for Texas to stick it to California in every way possible (as they have done in so many instances).  Check out the Times Standard article regarding the ruling.                   -Sharon


Suit against PALCO alleges fraud    -Eureka Reporter

4.19.07 Check it out!

4.7.07 Happy Saturday!  "Judge rules in favor of SCOPAC"  -Eureka Reporter.  Wow,  looks like the "Midnight Bombing Raid"  worked out pretty good!  These kind of things aren't so cut and dried, though.  We expect the attorneys to up the ante'. Many things in court are at play.  It will all go in the court history books of tomorrow for future courts to give comparison.  The first words that really come to my mind is,  'OH, Brother!'   

See also:

"Palco wins key ruling on asset issue" -Times Standard




4.2.07  Hello as I mention on our Community Events Section, the Times-Standard provided us access to their audio listen in on bankruptcy proceedings last Friday.  Here is Times-Standard's  John Driscoll's take: "Palco's timber assets assessed" and now we bring you:

Pampas Grass

Steven L. Wolff        The Rio Dell Times . com

This is one of the many important land inhabitants that was described by Dr. Jeffrey Barrett  Vice President of ScoPac.  As you may know,  the court is still in Texas with a determination of venue still up in the air.  We expect that within the next week or so we will know if the Judge will send it back to a California Court,  in which case  it would then be the Bankruptcy court in Oakland California that will take up the matter.  Strange that testimony is being presented without having this decided.  Here are the court filings we have...

542 Palco opposition to SARE.pdf

547 Noteholders motion to strike untimely filing.pdf

Noteholder Motion Determine Scopac SARE.pdf

Initially, there was discussion by Mr. Evan Jones representing Bank of America with the Judge on the naming of the note holders committee. The name is to be changed from "Adhok committee" to "Debtors Committee"  Once all of the rigor mural was ironed out over a name change, we get to the meat of the discussion.  There was a late court filing. 542 Palco opposition to SARE.pdf

Debtors committee:  "It's like a midnight bombing raid"  The document should have been filed within the 20 day deadline of the bankruptcy filing last February.  The Judge scolds, then proceeds with further presentations by attorneys.  (When you read the documents note that Adhok committee = Debtors Committee.)  Either case it's the note holders.  i.e Bank of New York, Bank of America, and all other major debtors owed some 800 + million by Maxim and its subsidiaries ScoPac and Palco.  The position the Debtors committee is to stay neutral.  The position of the note holders according to their testimony is that ScoPac is a "Special purpose limited liability company" which gave Palco the advantage of a lower interest rate on the debt.   ScoPac derives all of its revenue from the sale of logs to Palco.  This is a single asset of real property defined by California law (states determine the definition of real property.  California says trees on land are real property).   ScoPac derives 99% of it's revenue from the sale of logs to Palco.   ScoPac is a tree farm!

Now the other side:

Here is some testimony that we heard from one of Maxims attorneys Cathryn Colman "We are here to talk about today if ScoPac is a single asset debtor" 

1)  220,000 Acres of Timberland for harvest.  Most of this timberland is owned by ScoPac.

2)  ScoPac is not a "single asset company"  it is the employees that generate the revenue.  It doesn't matter who owns the land.  ScoPac is an active company that generates is revenue thru its employee's

3)  Out of 60 employees 49 of them are professionals including 2 PhD's and 12 Masters.  Who are key to making the tree's harvestable within regulatory, and legal requirements. 

4)  Endagered bird the Snowy Plover has lays its egg on a tree branch.  These are the types of things ScoPac has to deal with in order to make the trees able to be harvested.


More coming...



3.14.07 "Editorial was disappointing"  -Eureka Reporter

3.13.07  Mike and Carolyn Campbell's Letter   *** New ***

The Eureka Reporter and the Times-Standard would not publish Mike and Carolyn Campbell's Letter.  If you would like to submit a letter of your own just e-mail, or 


Alliance for Sustainable Jobs and the Environment-PL Bankruptcy


Armistice Day - Northcoast Journal  

January 23rd. 2007 Annexation Study Session Video and Meeting Notes

Updated 1.28.07

Charles Hurwitz can't seem to catch a break - Houston Chronicle

Posted comments from Houston Chronicle's "poor Charles" article

Rio Dell owed $110,000.00 by Palco for Annexation studies - Northcoast Journal

Palco bankruptcy story - Northcoast Journal

Severance packages on hold for laid-off workers - Times Standard

Scotia Development LLC.pdf - Bankruptcy filing

Palco urges Community Services District - Eureka Reporter


Bankruptcy 101

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