Pacific Lumber amends revolver to borrow $5 million more

By Caroline Salls

Pittsburgh, May 1 - The Pacific Lumber Co. and subsidiary Britt Lumber Co., Inc. entered into the eighth amendment to their revolving credit agreement with parent Maxxam Group Inc. that allows Pacific Lumber to borrow an additional $5 million for working capital purposes, according to an 8-K filing with the Securities and Exchange Commission.

Pacific Lumber has been provided up to $21 million in loans from Maxxam under the agreement.

The amendments also state that an event of default exists under Pacific Lumber's revolving credit and term loan agreements stemming from a breach of a revolving credit agreement EBITDA covenant for several periods.

The company said it is in discussions with lenders to revise the covenant and resolve the default.

Pacific Lumber is a Scotia, Calif.-based lumber company.

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