Pacific Lumber Co has announced plans to sell 21,800 acres of its woodland for residential development in an attempt to exit bankruptcy.
The company, which filed for bankruptcy on January 18, hopes the sale will generate US$780m that will go towards paying creditors in full and allow it to continue operating in North America.
The plan is still subject to approval by the US Bankruptcy Court in Corpus Christi, Texas, but would preserve jobs, operations and the going-value concern, as well as leaving equity intact, according to the company’s filing to the court.
The Los Angeles-based company has also announced that it will sell 6,600 acres of redwood forest to an organisation committed to protecting the environment and offering assurances on the preservation of the acerage.
