FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report: May 17, 1994
MAXXAM INC.
(Exact name of Registrant as Specified in its Charter)
Delaware
(State or other jurisdiction of incorporation)
1-3294
(Commission File Number)
95-2078752
(I.R.S. Employer Identification Number)
5847 San Felipe, Suite 2600
Houston, Texas
(Address of Principal 77057
Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (713) 975-
7600
Item 5. Other Events. Item 5. Other Events.
On May 17, 1994, MAXXAM Inc. (the "Company") and The
Pacific Lumber Company ("Pacific Lumber") announced that an
agreement in principle had been reached to settle class and
related individual claims brought by former stockholders of
Pacific Lumber against the Company, its subsidiaries MAXXAM Group
Inc. ("MGI") and Pacific Lumber, former directors of Pacific
Lumber, and others concerning MGI's acquisition of Pacific
Lumber. The settlement would cover the Fries State, Omicini,
Thompson State, Russ, Fries Federal, Thompson Federal, Boesky and
American Red Cross actions described under Item 3, "Legal
Proceedings -- Merger Litigation" of the Company's Annual Report
on Form 10-K for the fiscal year ended December 31, 1993. Of the
pending approximately $52.0 million settlement, approximately
$33.0 million would be paid by insurance carriers of the Company
and Pacific Lumber, approximately $14.8 million would be paid by
Pacific Lumber, and the balance would be paid by other defendants
and through the assignment of a related claim. The settlement is
subject to certain contingencies, including a fairness hearing
which will be held at a yet unspecified time in the United States
District Court, Southern District of New York (notice of which
hearing will be furnished to claimants). The above described
cash payments have been paid into the registry of the court
pending satisfaction of these contingencies.
Management believes the settlement of these claims is
in the best interest of the Company. The Company expects to
record in the second quarter of 1994 a loss of approximately
$14.9 million related to the settlement and associated costs, net
of benefits for federal and state income taxes. The Company
believes the settlement will not have a material adverse effect
on the Company's consolidated financial position.
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.
MAXXAM INC.
(Registrant)
Date: June 2, 1994 By: ANTHONY R. PIERNO
Anthony R. Pierno
Senior Vice President and
General Counsel
