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 1933
Date of Report: May 17, 1994
MAXXAM GROUP INC.
(Exact name of Registrant as Specified in its Charter)
Delaware
(State or other jurisdiction of incorporation)
1-8857
(Commission File Number)
13-1310680
(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.
On May 17, 1994, MAXXAM Inc. ("MAXXAM") 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
MAXXAM, its subsidiaries MAXXAM Group Inc. (the "Company") and
Pacific Lumber, former directors of Pacific Lumber, and others
concerning the Company'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 MAXXAM 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 an extraordinary loss of
approximately [$9.5] million related to the settlement, net of
the associated benefits for federal and state income taxes. The
Company believes the settlement will not have a material adverse
effect on the Company's ability to satisfy its working capital
requirements.
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 GROUP INC.
(Registrant)
Date: June 2, 1994 By: ANTHONY R. PIERNO
Anthony R. Pierno
Vice President and General Counsel
