Headwaters Forest Dealings not over yet...

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Federal Appeals Court rejects Pacific Lumber Creditor's Bid to overturn the $500 million+ Price Paid by Mendocino Redwoods co in the Bankruptcy battle

9/29/2009

But other issues may get a re-hearing...

I'm not a lawyer (yet) so I can't say what this ruling really means, but it seems that the main issue in the Pacific Lumber bankruptcy dispute has been resolved in favor of the new management that were installed by the lower bankruptcy court.

for the whole ruling:
http://www.ca5.uscourts.gov/opinions%5Cpub%5C08/08-40746-CV0.wpd.pdf

"We conclude that the MRC/Marathon plan, insofar as it paid the
Noteholders the allowed amount of their secured claim, did not violate the
absolute priority rule, was fair and equitable, satisfies 11 U.S.C.
§ 1129(b)(2)(A)(iii), and yielded a fair value of the Noteholders’ secured claim."

and how the court ruled on all the issues:

"We hold that equitable mootness does not bar review of issues raised on appeal concerning the treatment of the Noteholders’ secured claims; nor does it bar re-evaluation of whether their administrative priority claim was correctly calculated; nor does it bar review of the plan’s release clauses insulating multiple parties from liability. Equitable mootness does foreclose our review of issues related to the treatment of impaired and unsecured classes. Finally, we reject the Noteholders’ complaints against the plan’s payout of cash in full for their allowed secured claim, but we remand the administrative priority claim. We also reverse in part the broad non-debtor releases."