You are currently browsing the daily archive for December 19, 2007.
Remember that mediation the bankruptcy judge ordered while chastising PL? The Times Standard is reporting that negotiations have “broken down.” Coincidentally they broke down last week just after the TPZ process was shut down by the BOS.
Court documents show that the mediation ordered by Corpus Christi, Tex. U.S. Bankruptcy Judge Richard Schmidt in October was unsuccessful, and was abandoned last week. Schmidt on Tuesday granted the timber noteholders’ request to hold a hearing to end Palco’s period of exclusivity for submission of a restructuring plan.
That hearing is set for Friday.
Palco’s reorganization plan called for culling out 22,000 acres of timberland to be divided into 160-acre ranchettes, and to sell 6,600 acres of forest considered important for the threatened marbled murrelet. That, the company said, would give it the money it needed to pay down its huge debt. The plan sparked significant controversy in Humboldt County, but also met with disbelief from the noteholders, who offered another plan. (emphasis added)
Whatever squeeze PL may have been feeling, it’s apparently gone now. We’re on our way to becoming a retirement community along the lines of Palm Springs.