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<P>&nbsp;</P></DIV></DIV><BR>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><B><FONT
size=2>UNITED STATES</FONT></B></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><B><FONT
size=2>SECURITIES AND EXCHANGE COMMISSION</FONT></B></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><B><FONT
size=2>WASHINGTON, D.C. 20549</FONT></B></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><B><FONT
size=2>FORM 8-K</FONT></B></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><B><FONT
size=2>CURRENT REPORT</FONT></B></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><B><FONT
size=2>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934</FONT></B></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><FONT
size=2>Date of Report (Date of earliest event reported):</FONT><FONT
size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U><B><FONT
size=2>April 19, 2005</FONT></B></U><FONT size=2>&nbsp;</FONT></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><FONT
size=2></FONT>&nbsp;</P>
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    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; BORDER-LEFT-COLOR: gray; BORDER-BOTTOM-COLOR: gray; PADDING-BOTTOM: 0in; BORDER-TOP-COLOR: gray; PADDING-TOP: 0in; BORDER-RIGHT-COLOR: gray"
    vAlign=top width="100%">
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><B><FONT
      size=2>MAXXAM INC.</FONT></B></P></TD></TR></TABLE>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><FONT
size=2>(Exact name of registrant as specified in its charter)</FONT></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><FONT
size=2></FONT>&nbsp;</P>
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    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top width="37%">
      <P style="MARGIN-RIGHT: -5.4pt; TEXT-ALIGN: center" align=center><B><FONT
      size=2>Delaware</FONT></B></P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top colSpan=5>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><B><FONT
      size=2>1-3924</FONT></B></P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top width="34%">
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><B><FONT
      size=2>95-2078752</FONT></B></P></TD></TR>
  <TR>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top width="37%">
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><FONT
      size=2>(State or other jurisdiction of incorporation or
      organization)</FONT></P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top colSpan=5>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><FONT
      size=2>(Commission File Number)</FONT></P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top width="34%">
      <P style="MARGIN-RIGHT: -0.9pt; TEXT-ALIGN: center" align=center><FONT
      size=2>(I.R.S. Employer Identification No.)</FONT></P></TD></TR>
  <TR>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top width="37%">
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><FONT
      size=1></FONT>&nbsp;</P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top colSpan=5>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><FONT
      size=1></FONT>&nbsp;</P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top width="34%">
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><FONT
      size=1></FONT>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top colSpan=3>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><B><FONT
      size=2>1330 Post Oak Boulevard</FONT></B><BR><B><FONT size=2>Suite
      2000</FONT></B></P>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><B><FONT
      size=2>Houston, Texas</FONT></B></P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top colSpan=2>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><FONT
      size=1></FONT>&nbsp;</P></TD>
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    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top colSpan=2>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center"
      align=center><BR><BR></P>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><B><FONT
      size=2>77056</FONT></B></P></TD></TR>
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    vAlign=top colSpan=3>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><FONT
      size=2>(Address of principal executive offices)</FONT></P></TD>
    <TD
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    vAlign=top colSpan=2>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><FONT
      size=1></FONT>&nbsp;</P></TD>
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    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top colSpan=2>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><FONT
      size=2>(Zip Code)</FONT></P></TD></TR>
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    <TD
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    vAlign=top colSpan=2>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><FONT
      size=1></FONT>&nbsp;</P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top colSpan=2>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><FONT
      size=1></FONT>&nbsp;</P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top colSpan=3>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><FONT
      size=1></FONT>&nbsp;</P></TD></TR>
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    vAlign=top colSpan=2>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><FONT
      size=1></FONT>&nbsp;</P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top colSpan=2>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><FONT
      size=1></FONT>&nbsp;</P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top colSpan=3>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><FONT
      size=1></FONT>&nbsp;</P></TD></TR>
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    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top colSpan=7>
      <P style="MARGIN-RIGHT: -0.15in; TEXT-ALIGN: center" align=center><FONT
      size=2>Registrant's telephone number, including area code: </FONT><B><FONT
      size=2>(713) 975-7600</FONT></B></P></TD></TR>
  <TR>
    <TD width=223></TD>
    <TD width=36></TD>
    <TD width=96></TD>
    <TD width=12></TD>
    <TD width=4></TD>
    <TD width=20></TD>
    <TD width=210></TD></TR></TABLE>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><FONT
size=2>Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):</FONT></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><FONT
size=2><img src="ballot.jpg"> Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)</FONT></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><FONT
size=2><img src="ballot.jpg"> Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)</FONT></P>
<P
style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.12in; TEXT-INDENT: -0.12in; TEXT-ALIGN: justify"><FONT
size=2><img src="ballot.jpg"> Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17&nbsp;CFR 240.14d-2(b))</FONT></P>
<P
style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.12in; TEXT-INDENT: -0.12in; TEXT-ALIGN: justify"><FONT
size=2><img src="ballot.jpg"> Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17&nbsp;CFR 240.13e-4(c))</FONT></P>
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<P>&nbsp;</P></DIV></DIV><BR>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P><BR>
<HR align=center width="100%" noShade SIZE=2>

<P style="PAGE-BREAK-BEFORE: always"></P><PAGE>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P>
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      <P><B><FONT size=2>Item 1.01.</FONT></B></P></TD>
    <TD
    style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in"
    vAlign=top width="75%">
      <P><B><FONT size=2>Entry Into a Material Definitive
      Agreement.</FONT></B></P></TD></TR></TABLE>
<P
style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify"><FONT
size=2>On April 19, 2005, the Registrant's indirect wholly owned subsidiary, The
Pacific Lumber Company ("</FONT><B><FONT size=2>Palco</FONT></B><FONT size=2>"),
and Palco's subsidiary, Britt Lumber Co., Inc. ("</FONT><B><FONT
size=2>Britt</FONT></B><FONT size=2>"), as borrowers, closed </FONT></P>
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    <TD
    style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in"
    vAlign=top width="4%">
      <P><FONT size=4><B>&#149;</B></FONT></P></TD>
    <TD
    style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in"
    vAlign=top>
      <P><FONT size=2>a five-year $30.0 million secured asset-based revolving
      credit facility ("</FONT><B><FONT size=2>Revolving Credit
      Facility</FONT></B><FONT size=2>") with The CIT Group/Business Credit,
      Inc. ("</FONT><B><FONT size=2>CIT</FONT></B><FONT size=2>");
    and</FONT></P></TD></TR>
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    <TD
    style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in"
    vAlign=top width="4%">
      <P><FONT size=4><B>&#149;</B></FONT></P></TD>
    <TD
    style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in"
    vAlign=top>
      <P><FONT size=2>a five-year $35.0 million secured term loan agreement
      ("</FONT><B><FONT size=2>Term Loan</FONT></B><FONT size=2>") with Credit
      Suisse First Boston ("</FONT><B><FONT size=2>CSFB</FONT></B><FONT
      size=2>").</FONT></P></TD></TR></TABLE>
<P
style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify"><FONT
size=2>The borrowers used approximately $10.8 million of the funds from the Term
Loan to pay off amounts borrowed under the asset-based revolving credit
agreement between Bank of America ("</FONT><B><FONT size=2>Bank of
America</FONT></B><FONT size=2>," which term as used herein shall include any of
its affiliates) and borrowers (the "</FONT><B><FONT size=2>Old Credit
Agreement</FONT></B><FONT size=2>"). The borrowers also terminated the Old
Credit Agreement (see Item 1.02 below).</FONT></P>
<P
style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify"><FONT
size=2>The amount available for borrowing at any time under the Revolving Credit
Facility (up to $30 million) is the sum of 85% of the borrowers' eligible
accounts receivable plus 75% of the borrowers' eligible inventories. The loans
outstanding under the Revolving Credit Facility will bear interest, at the
borrowers' option, at the rate of LIBOR plus 2.25% or prime plus 0.50%. The
Revolving Credit Facility matures on April 19, 2010. As of this date, the
borrowers have not made any borrowings under the Revolving Credit Facility. The
Term Loan has been fully funded. The Term Loan bears interest, at the borrowers'
option, at the rate of LIBOR plus 6% or prime plus 5%. The Term Loan is
repayable in quarterly installments of $87,500 each, beginning on June 1, 2005.
A balloon payment of the remaining principal balance is due on April 19,
2010.</FONT></P>
<P
style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify"><FONT
size=2>The Revolving Credit Facility and the Term Loan contain substantially
identical restrictive covenants that limit the borrowers' ability to incur debt,
grant liens, make investments, pay dividends, make capital expenditures or merge
or consolidate, and require the borrowers' to maintain a minimum level of EBITDA
throughout the life of the loans. The Revolving Credit Facility and the Term
Loan contain customary events of default and customary remedies with respect to
the occurrence of an event of default.</FONT></P>
<P
style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify"><FONT
size=2>The Revolving Credit Facility includes a prepayment premium of 1% payable
in connection with any prepayment or reduction in the commitment occurring
within the first two years. The Term Loan includes prepayment premiums of 4%,
3%, 2% and 1% payable in connection with any prepayment of the Term Loan that
occurs during the first, second, third and fourth years, respectively. No
prepayment premium will be payable under either credit facility to a lender who
is also a lender under any refinancing used to prepay such credit facility. The
Term Loan also requires certain mandatory prepayments in connection with asset
sales by borrowers. </FONT></P>
<P
style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify"><FONT
size=2>This description of the material terms of the Revolving Credit Agreement
and Term Loan is not a complete statement of the parties' rights and obligations
under such agreements. The above statements are qualified in their entirety by
reference to the actual agreements, copies of which are attached to this Current
Report on Form 8-K as Exhibits 10.1 and 10.2.</FONT></P>
<P
style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify"><FONT
size=2>Pursuant to two substantially identical Guarantee and Collateral
Agreements (one in favor of each of CSFB and CIT) and substantially identical
Deeds of Trust (in favor of each of CSFB and CIT) (collectively, the
"</FONT><B><FONT size=2>Security Agreements</FONT></B><FONT size=2>"), the
Revolving Credit Facility and the Term Loan are each secured by a security
interest in the stock of Palco held by its immediate parent, MAXXAM Group Inc.
("</FONT><B><FONT size=2>MGI</FONT></B><FONT size=2>"), and substantially all of
the assets of the borrowers (other than the Palco's equity interest in Scotia
Pacific Company LLC; "</FONT><B><FONT size=2>Scotia Pacific</FONT></B><FONT
size=2>"). The Security Agreements contain customary covenants regarding
insurance requirements and maintenance of the collateral, as well as customary
remedies upon the occurrence of events of default </FONT></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P><BR>
<HR align=center width="100%" noShade SIZE=2>

<P style="PAGE-BREAK-BEFORE: always"></P><PAGE>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P>
<P
style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify"><FONT
size=2>These descriptions of the material terms of the Guarantee and Collateral
Agreements and Deeds of Trust are not complete statements of the parties' rights
and obligations under such agreements. The above statements are qualified in
their entirety by reference to the actual agreements (copies of which will be
filed by no later than the Registrant's Form 10-Q for the first quarter of
2005). </FONT></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width=423 border=0>
  <TR>
    <TD
    style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in"
    vAlign=top width="22%">
      <P><B><FONT size=2>Item 1.02.</FONT></B></P></TD>
    <TD
    style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in"
    vAlign=top width="77%">
      <P><B><FONT size=2>Termination of a Material Definitive
      Agreement.</FONT></B></P></TD></TR></TABLE>
<P
style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify"><FONT
size=2>As described above, Palco and Britt terminated the Old Credit Agreement
on April 19, 2005 in connection with entry into the Revolving Credit Agreement
and Term Loan Agreement. The Old Credit Agreement provided for a three-year
revolving credit facility allowing for borrowings of up to $30 million based
upon the sum of 85% of the borrowers' eligible accounts receivable and 65% of
the borrowers' eligible inventory. Borrowings under the Old Credit Agreement
bore interest at rates based upon (and at variable margins above) LIBOR or the
prime rate, and were secured by the substantial portion of Palco's and Britt's
assets. In connection with the termination, MGI's recent pledge of a $2.5
million certificate of deposit as additional security was released. As
previously disclosed, Palco and Britt were in default under the Old Credit
Agreement and had received limited waivers of the default (most recently through
April 22. 2005).</FONT></P>
<P
style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify"><FONT
size=2>Bank of America is agent and a participating bank under a line of credit
that allows Scotia Pacific to borrow up to one year's interest on Scotia
Pacific's Timber Collateralized Notes. For further information regarding this
line of credit, see Note 7 to the Consolidated Financial Statements set forth in
the Registrant's Annual Report on Form 10-K for the fiscal year ended December
31, 2004. </FONT></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: left"><B><FONT
size=2>Item 2.03</FONT></B><FONT size=1>&nbsp;&nbsp;</FONT><B><FONT
size=2>Creation of a Direct Financial Obligation or and Obligation under and
Off-Balance Sheet Arrangement or a Registrant.</FONT></B></P>
<P
style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify"><FONT
size=2>To the extent applicable, the contents of Item 1.01 above are
incorporated into this Item 2.03 by reference.</FONT></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width=336 border=0>
  <TR>
    <TD
    style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in"
    vAlign=top width="28%">
      <P><B><FONT size=2>Item 9.01</FONT></B></P></TD>
    <TD
    style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in"
    vAlign=top width="71%">
      <P><B><FONT size=2>Financial Statements and
  Exhibits.</FONT></B></P></TD></TR></TABLE>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: left"><FONT
size=2>c) Exhibits</FONT></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width=631 border=0>
  <TR>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; BORDER-LEFT-COLOR: gray; BORDER-BOTTOM-COLOR: gray; PADDING-BOTTOM: 0in; BORDER-TOP-COLOR: gray; PADDING-TOP: 0in; BORDER-RIGHT-COLOR: gray"
    vAlign=top width="14%">
      <P
      style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 3pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><B><FONT
      size=2>Exhibit </FONT></B><U><B><FONT size=2>Number</FONT></B></U></P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top width="85%">
      <P
      style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 3pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><BR><U><B><FONT
      size=2>Description</FONT></B></U></P></TD></TR>
  <TR>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top width="14%">
      <P
      style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 3pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><FONT
      size=2>10.1</FONT></P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top width="85%">
      <P
      style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 3pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT
      size=2>Revolving Credit Agreement dated as of April 19, 2005 among The
      Pacific Lumber Company, Britt Lumber Co., Inc., the lenders from time to
      time party thereto and The CIT Group/Business Credit, Inc (filed
      herewith).</FONT></P></TD></TR>
  <TR>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top width="14%">
      <P
      style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 3pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><FONT
      size=2>10.2</FONT></P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in"
    vAlign=top width="85%">
      <P
      style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 3pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT
      size=2>Term Loan Agreement, dated as of April 19, 2005 among The Pacific
      Lumber Company, Britt Lumber Co., Inc., the lenders from time to time
      party thereto and Credit Suisse First Boston (filed
    herewith).</FONT></P></TD></TR></TABLE>
<P
style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 24pt; TEXT-ALIGN: center"><B><FONT
size=2>SIGNATURES</FONT></B></P>
<P
style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify"><FONT
size=2>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.</FONT></P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width=410 border=0>
  <TR>
    <TD
    style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0.5in; PADDING-TOP: 0in"
    vAlign=top width="11%">
      <P><FONT size=2>Date:</FONT></P></TD>
    <TD
    style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0.5in; PADDING-TOP: 0in"
    vAlign=top width="58%">
      <P><FONT size=2>April 25, 2005</FONT></P></TD>
    <TD
    style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0.5in; PADDING-TOP: 0in"
    vAlign=top width="29%">
      <P><FONT size=2>MAXXAM INC.</FONT></P></TD></TR></TABLE>
<TABLE style="MARGIN-LEFT: 207pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width=339 border=0>
  <TR>
    <TD vAlign=top width="14%">
      <P><FONT size=2>By:</FONT></P></TD>
    <TD vAlign=top colSpan=2>
      <P><U><FONT size=2>/s/ Bernard L. Birkel</FONT></U></P></TD>
    <TD width="44%">
      <P><FONT size=1></FONT>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width="14%">
      <P><FONT size=2>Name:</FONT></P></TD>
    <TD vAlign=top width="36%">
      <P><FONT size=2>Bernard L. Birkel</FONT></P></TD>
    <TD colSpan=2>
      <P><FONT size=1></FONT>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width="14%">
      <P><FONT size=2>Title:</FONT></P></TD>
    <TD vAlign=top colSpan=3>
      <P><FONT size=2>Secretary &amp; Senior Assistant General
    Counsel</FONT></P></TD></TR>
  <TR>
    <TD width=48></TD>
    <TD width=124></TD>
    <TD width=17></TD>
    <TD width=150></TD></TR></TABLE>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=2></FONT>&nbsp;</P></DIV></BODY></HTML>
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{"company-data": {"conformed-name": "MAXXAM INC", "cik": "0000063814", "assigned-sic": "3334", "irs-number": "952078752", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-03924", "film-number": "05770795"}, "business-address": {"street1": "1330 POST OAK BOULEVARD", "street2": "SUITE 2000", "city": "HOUSTON", "state": "TX", "zip": "77056-3058", "phone": "7139757600"}, "mail-address": {"street1": "1330 POST OAK BOULEVARD", "street2": "SUITE 2000", "city": "HOUSTON", "state": "TX", "zip": "77056-3058"}, "former-company": [{"former-conformed-name": "MCO HOLDINGS INC", "date-changed": "19881115"}, {"former-conformed-name": "MCCULLOCH OIL CORP", "date-changed": "19800630"}, {"former-conformed-name": "MCCULLOCH OIL CORP OF CALIFORNIA", "date-changed": "19691118"}]}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934
Date of Report (Date of earliest event reported):
April 19, 2005
MAXXAM INC.
(Exact name of registrant as specified in its charter)
Delaware
1-3924
95-2078752
(State or other jurisdiction of incorporation or
      organization)
(Commission File Number)
(I.R.S. Employer Identification No.)
1330 Post Oak Boulevard
Suite
      2000
Houston, Texas
77056
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code:
(713) 975-7600
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 1.01.
Entry Into a Material Definitive
      Agreement.
On April 19, 2005, the Registrant's indirect wholly owned subsidiary, The
Pacific Lumber Company ("
Palco
"),
and Palco's subsidiary, Britt Lumber Co., Inc. ("
Britt
"), as borrowers, closed
•
a five-year $30.0 million secured asset-based revolving
      credit facility ("
Revolving Credit
      Facility
") with The CIT Group/Business Credit,
      Inc. ("
CIT
");
    and
•
a five-year $35.0 million secured term loan agreement
      ("
Term Loan
") with Credit
      Suisse First Boston ("
CSFB
").
The borrowers used approximately $10.8 million of the funds from the Term
Loan to pay off amounts borrowed under the asset-based revolving credit
agreement between Bank of America ("
Bank of
America
," which term as used herein shall include any of
its affiliates) and borrowers (the "
Old Credit
Agreement
"). The borrowers also terminated the Old
Credit Agreement (see Item 1.02 below).
The amount available for borrowing at any time under the Revolving Credit
Facility (up to $30 million) is the sum of 85% of the borrowers' eligible
accounts receivable plus 75% of the borrowers' eligible inventories. The loans
outstanding under the Revolving Credit Facility will bear interest, at the
borrowers' option, at the rate of LIBOR plus 2.25% or prime plus 0.50%. The
Revolving Credit Facility matures on April 19, 2010. As of this date, the
borrowers have not made any borrowings under the Revolving Credit Facility. The
Term Loan has been fully funded. The Term Loan bears interest, at the borrowers'
option, at the rate of LIBOR plus 6% or prime plus 5%. The Term Loan is
repayable in quarterly installments of $87,500 each, beginning on June 1, 2005.
A balloon payment of the remaining principal balance is due on April 19,
2010.
The Revolving Credit Facility and the Term Loan contain substantially
identical restrictive covenants that limit the borrowers' ability to incur debt,
grant liens, make investments, pay dividends, make capital expenditures or merge
or consolidate, and require the borrowers' to maintain a minimum level of EBITDA
throughout the life of the loans. The Revolving Credit Facility and the Term
Loan contain customary events of default and customary remedies with respect to
the occurrence of an event of default.
The Revolving Credit Facility includes a prepayment premium of 1% payable
in connection with any prepayment or reduction in the commitment occurring
within the first two years. The Term Loan includes prepayment premiums of 4%,
3%, 2% and 1% payable in connection with any prepayment of the Term Loan that
occurs during the first, second, third and fourth years, respectively. No
prepayment premium will be payable under either credit facility to a lender who
is also a lender under any refinancing used to prepay such credit facility. The
Term Loan also requires certain mandatory prepayments in connection with asset
sales by borrowers.
This description of the material terms of the Revolving Credit Agreement
and Term Loan is not a complete statement of the parties' rights and obligations
under such agreements. The above statements are qualified in their entirety by
reference to the actual agreements, copies of which are attached to this Current
Report on Form 8-K as Exhibits 10.1 and 10.2.
Pursuant to two substantially identical Guarantee and Collateral
Agreements (one in favor of each of CSFB and CIT) and substantially identical
Deeds of Trust (in favor of each of CSFB and CIT) (collectively, the
"
Security Agreements
"), the
Revolving Credit Facility and the Term Loan are each secured by a security
interest in the stock of Palco held by its immediate parent, MAXXAM Group Inc.
("
MGI
"), and substantially all of
the assets of the borrowers (other than the Palco's equity interest in Scotia
Pacific Company LLC; "
Scotia Pacific
"). The Security Agreements contain customary covenants regarding
insurance requirements and maintenance of the collateral, as well as customary
remedies upon the occurrence of events of default
These descriptions of the material terms of the Guarantee and Collateral
Agreements and Deeds of Trust are not complete statements of the parties' rights
and obligations under such agreements. The above statements are qualified in
their entirety by reference to the actual agreements (copies of which will be
filed by no later than the Registrant's Form 10-Q for the first quarter of
2005).
Item 1.02.
Termination of a Material Definitive
      Agreement.
As described above, Palco and Britt terminated the Old Credit Agreement
on April 19, 2005 in connection with entry into the Revolving Credit Agreement
and Term Loan Agreement. The Old Credit Agreement provided for a three-year
revolving credit facility allowing for borrowings of up to $30 million based
upon the sum of 85% of the borrowers' eligible accounts receivable and 65% of
the borrowers' eligible inventory. Borrowings under the Old Credit Agreement
bore interest at rates based upon (and at variable margins above) LIBOR or the
prime rate, and were secured by the substantial portion of Palco's and Britt's
assets. In connection with the termination, MGI's recent pledge of a $2.5
million certificate of deposit as additional security was released. As
previously disclosed, Palco and Britt were in default under the Old Credit
Agreement and had received limited waivers of the default (most recently through
April 22. 2005).
Bank of America is agent and a participating bank under a line of credit
that allows Scotia Pacific to borrow up to one year's interest on Scotia
Pacific's Timber Collateralized Notes. For further information regarding this
line of credit, see Note 7 to the Consolidated Financial Statements set forth in
the Registrant's Annual Report on Form 10-K for the fiscal year ended December
31, 2004.
Item 2.03
Creation of a Direct Financial Obligation or and Obligation under and
Off-Balance Sheet Arrangement or a Registrant.
To the extent applicable, the contents of Item 1.01 above are
incorporated into this Item 2.03 by reference.
Item 9.01
Financial Statements and
  Exhibits.
c) Exhibits
Exhibit
Number
Description
10.1
Revolving Credit Agreement dated as of April 19, 2005 among The
      Pacific Lumber Company, Britt Lumber Co., Inc., the lenders from time to
      time party thereto and The CIT Group/Business Credit, Inc (filed
      herewith).
10.2
Term Loan Agreement, dated as of April 19, 2005 among The Pacific
      Lumber Company, Britt Lumber Co., Inc., the lenders from time to time
      party thereto and Credit Suisse First Boston (filed
    herewith).
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.
Date:
April 25, 2005
MAXXAM INC.
By:
/s/ Bernard L. Birkel
Name:
Bernard L. Birkel
Title:
Secretary & Senior Assistant General
    Counsel