Pacific Lumber cuts exclusivity extension request to 30 days in light of new valuation information

By Caroline Salls

Pittsburgh, Sept. 12 - Pacific Lumber Co. has reduced its request for an extension of its exclusive period to file a plan of reorganization to 30 days from 90 days, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

The company now wants to extend its exclusive plan filing period to Oct. 18 from Sept. 18.

In addition, the company wants to extend the exclusive period to solicit votes on the plan to Feb. 19 from Nov. 19.

Pacific Lumber originally asked to extend the solicitation period to Feb. 17.

According to the amended motion, just last week the company finally received enough information from its appraisers and valuation experts to confirm that its estates have substantial value available for equity.

However, Pacific Lumber said the information is still preliminary, and some additional time is needed to obtain finalized information and opinions for use with the plan.

As a result, the company said it believes the 30-day extension is just enough time for the appraisers and valuation experts to finish their work and give the debtors enough detailed information to finalize the current drafts of the plan and disclosure statement.

Pacific Lumber said it expects to seek confirmation of the plan in February.

As previously reported, the company's timber notes indenture trustee has asked the court to terminate Pacific Lumber's exclusivity so the indenture trustee can propose its own plan of reorganization.

Pacific Lumber's official committee of unsecured creditors also objected to the original 90-day extension request.

The hearing on both the termination motion and the exclusivity extension is scheduled for Sept. 14.

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, 2007. Its Chapter 11 case number is 07-20027.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.