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
THE PACIFIC LUMBER COMPANY
(Exact name of Registrant as Specified in its Charter)
Delaware
(State or other jurisdiction of incorporation)
1-9204
(Commission File Number)
13-3318327
(I.R.S. Employer Identification Number)
P.O. Box 37
125 Main Street
Scotia, California 95565
(Address of Principal (Zip Code)
Executive Offices)
Registrant's telephone number, including area code: (707) 764-
2222
ITEM 5. OTHER EVENTS.
On May 17, 1994, MAXXAM Inc. ("MAXXAM") and The Pacific
Lumber Company (the "Company") announced that an agreement in
principle had been reached to settle class and related individual
claims brought by former stockholders of the Company against
MAXXAM, its subsidiaries MAXXAM Group Inc. ("MGI") and the
Company, former directors of the Company, and others concerning
MGI's acquisition of the Company. 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 the Company, approximately $14.8
million would be paid by the Company, 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 $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 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.
THE PACIFIC LUMBER COMPANY
(Registrant)
Date: June 2, 1994 By: ANTHONY R. PIERNO
Anthony R. Pierno
Vice President and General Counsel
