Mediation fails to settle Pacific Lumber bankruptcy issues
Mediation attempts to settle Pacific Lumber’s bankruptcy issues have failed, sending the matter back to the courts, according to the San Francisco Chronicle.
Pacific Lumber unveiled a plan in October to sell approximately 29,000 acres of its best redwoods for $600 million to help with the company’s reorganization. Creditors disputed that the trees were not worth so much — the court then ordered the two sides meet with a mediator to work out a compromise.
Pacific Lumber filed for bankruptcy in January in Texas after the company failed to make a payment on about $714 million in bonds. That debt is traced back to a 1986 acquisition of the Humboldt County logging company by Pacific Lumber’s parent company Maxxam Corp.
The question before federal Bankruptcy Court Judge Richard Schmidt of Corpus Christi, Texas, is whether to turn control of Pacific Lumber’s 200,000 acres of redwood forest over to Maxxam Corp. or its creditors.
Huttig to close two branches
Huttig Building Products, a distributor of millwork, building materials and wood products, has announced its intention to close facilities in Greensburg, Pa., and Kansas City, Mo., in response to market conditions.
Greensburg customers will be served from distribution facilities in Columbus, Ohio, and Lancaster, Pa. The company will cover the Kansas City market from its facility in Springfield, Mo.
Huttig expects to save approximately $2.0 million before taxes as a result of the consolidation, which will also involve downsizing its corporate office in St. Louis.
Approximately 50 positions will be eliminated at the two closed branches, although some employees may transfer to other locations, according to the Huttig announcement. Another 30 positions have been cut at other branches and at Huttig headquarters during the fourth quarter of 2007, the company said.
Huttig currently operates through 36 locations serving the building, remodeling, industrial and manufactured homes market in 44 states.
PAL president to retire
Progressive Affiliated Lumbermen Cooperative (PAL), a building materials co-op based in Grand Rapids, Mich., has announced the retirement of its long-time president, William “Bill” Danzig, on Dec. 31, 2007.
A29-year veteran of the company, Danzig started as an assistant general manager before being promoted to executive vp and general manager. He assumed the title of president in the mid-1980s.
Danzig’s replacement has not yet been named, according to a PAL spokesperson.
Established in 1934, PAL is a member-owned buying group of independent lumberyards with dealers in 17 states throughout the Midwest and the Mid-Atlantic regions.