Pacific Lumber asks court to order reconstitution of unsecured creditors committee

By Caroline Salls

Pittsburgh, March 29 - Pacific Lumber Co. requested court approval to reconstitute its official committee of unsecured creditors, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

According to the motion, when the U.S. Trustee appointed the current committee, the company submitted a detailed objection and asked the U.S. Trustee to immediately reconstitute the committee.

Pacific Lumber said the current committee is comprised of only four members, three of which hold only contingent, unliquidated litigation claims against the company.

As a result, the company said the committee should be reconstituted to allow adequate representation for unsecured creditors.

In addition, Pacific Lumber said the U.S. Trustee denied its request for reconstitution, saying the committee composition does not need to be revisited at this time.

Without court intervention, the company said the U.S. Trustee will most likely not consider the issue in a reasonable timeframe.

A hearing is scheduled for April 10.

Pacific Lumber, a Scotia, Calif.-based producer of redwood lumber and an indirect wholly owned subsidiary of Maxxam Inc., filed for bankruptcy on Jan. 18. Its Chapter 11 case number is 07-20027.

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