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AND EXCHANGE COMMISSION</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Washington,
D.C.&#160;20549</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman">FORM
8-K</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
Report Pursuant to Section 13 or 15(d) of</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Securities Exchange Act of 1934</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date of
Report (date of earliest event reported): <font style="DISPLAY: inline; FONT-WEIGHT: bold">July 10</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">, 2008</font></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman">MAXXAM
INC.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
name of Registrant as Specified in its Charter)</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Delaware</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(State or
other jurisdiction of incorporation)</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1-3924</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Commission
File Number)</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">95-2078752</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(I.R.S.
Employer Identification Number)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">1330
      Post Oak Boulevard</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Suite
      2000</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Houston,
      Texas</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(Address
      of Principal Executive Offices)</font></div>
            </td>
            <td align="left" valign="top" width="23%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="22%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">77056</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(Zip
      Code)</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registrant&#8217;s
telephone number, including area code: <font style="DISPLAY: inline; FONT-WEIGHT: bold">(713) 975-7600</font></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Not
Applicable</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Former
name, former address and</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">former
fiscal year, if changed since last report)</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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:</font></div>
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</font>Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)</font></div>
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</font>Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)</font></div>
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</font>Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))</font></div>
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</font>Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 468pt"></font><br></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
1.01.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Entry
into Material Definitive Agreement.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Background</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>MAXXAM Inc. (the <font style="DISPLAY: inline; FONT-WEIGHT: bold">&#8220;Company&#8221;</font>) has previously
disclosed that on January 18, 2007, The Pacific Lumber Company, an indirect
wholly owned subsidiary of the Company (<font style="DISPLAY: inline; FONT-WEIGHT: bold">&#8220;Palco&#8221;</font>), and Palco&#8217;s
subsidiaries, including Scotia Pacific Company LLC (<font style="DISPLAY: inline; FONT-WEIGHT: bold">&#8220;Scopac&#8221;</font>), filed separate
voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy
Code.&#160;&#160;Palco, Scopac and Palco&#8217;s other subsidiaries are collectively
referred to herein as the <font style="DISPLAY: inline; FONT-WEIGHT: bold">&#8220;Debtors.&#8221;</font></font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>On the January 30, 2008 deadline
established by the Bankruptcy Court, the Debtors filed an amended joint plan of
reorganization (the <font style="DISPLAY: inline; FONT-WEIGHT: bold">&#8220;Joint
Plan&#8221;</font>) with the Bankruptcy Court.&#160;&#160;That same day, Scopac alone,
and Palco and its subsidiaries other than Scopac (collectively, the <font style="DISPLAY: inline; FONT-WEIGHT: bold">&#8220;Palco Debtors&#8221;</font>) as a group,
filed separate alternative stand-alone plans of reorganization (the <font style="DISPLAY: inline; FONT-WEIGHT: bold">&#8220;Alternative
Plans&#8221;</font>).&#160;&#160;The Joint Plan and Alternative Plans were
subsequently withdrawn.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>Two other plans of reorganization were
filed on the January 30, 2008 deadline.&#160;&#160;The first was a plan (the
<font style="DISPLAY: inline; FONT-WEIGHT: bold">&#8220;MRC/Marathon Plan&#8221;</font>)
proposed (and later amended) by Mendocino Redwood Company (<font style="DISPLAY: inline; FONT-WEIGHT: bold">&#8220;MRC&#8221;</font>) and Palco&#8217;s principal
creditor, Marathon Structured Finance Fund L.P. (<font style="DISPLAY: inline; FONT-WEIGHT: bold">&#8220;Marathon&#8221;</font>).&#160;&#160;The
second was a plan (the <font style="DISPLAY: inline; FONT-WEIGHT: bold">&#8220;Noteholder Plan&#8221;</font>) proposed
(and later amended and modified) by the indenture trustee (the <font style="DISPLAY: inline; FONT-WEIGHT: bold">&#8220;Indenture Trustee&#8221;</font>) on behalf
of the holders (the <font style="DISPLAY: inline; FONT-WEIGHT: bold">&#8220;Timber
Noteholders&#8221;</font>) of Scopac&#8217;s $713.8 million principal amount (as of December
31, 2006) of Timber Collateralized Notes (the <font style="DISPLAY: inline; FONT-WEIGHT: bold">&#8220;Timber
Notes&#8221;</font>).&#160;&#160;The MRC/Marathon Plan would reorganize and continue
the businesses of the Debtors.&#160;&#160;It also provides for virtually all of
the creditor classes other than Marathon to receive substantial cash
payments.&#160;&#160;The Noteholder Plan effectively provides for an auction of
Scopac&#8217;s timberlands to the highest bidder.&#160;&#160;It does not address the
Palco Debtors.&#160;&#160;Both the MRC/Marathon Plan and the Noteholder Plan
would result in the loss entirely of the Company&#8217;s indirect equity interests in
Palco and Palco&#8217;s subsidiaries, including Scopac.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Recent
Developments in the Bankruptcy Proceedings</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On July
8, 2008, the Bankruptcy Court entered an order that, among other things,
confirmed the MRC/Marathon Plan and denied confirmation of the Noteholder Plan
(the <font style="DISPLAY: inline; FONT-WEIGHT: bold">&#8220;Confirmation
Order&#8221;</font>).&#160; </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On July
9, 2008, the Indenture Trustee filed a notice of appeal and an emergency motion
for a stay of the Confirmation Order pending appeal (the <font style="DISPLAY: inline; FONT-WEIGHT: bold">&#8220;Motion for
Stay&#8221;</font>).&#160;&#160;Other entities, including Scopac and certain
individual Timber Noteholders, also filed notices of appeal and joined in the
Indenture Trustee&#8217;s Motion for Stay.&#160;&#160;The Indenture Trustee also
requested direct appeal of the Confirmation Order (the <font style="DISPLAY: inline; FONT-WEIGHT: bold">&#8220;Direct Appeal Request&#8221;</font>) to
the Fifth Circuit Court of Appeals (the <font style="DISPLAY: inline; FONT-WEIGHT: bold">&#8220;Fifth
Circuit&#8221;</font>).&#160;&#160;On July 10-11, 2008, the Bankruptcy Court held an
evidentiary hearing on the Motion for Stay and Direct Appeal
Request.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Company has previously described a Settlement Term Sheet (the <font style="DISPLAY: inline; FONT-WEIGHT: bold">&#8220;Settlement Term Sheet&#8221;</font>)
entered into on May 1, 1988 by MRC, Marathon, and the Company and certain of its
affiliates, including the Palco Debtors.&#160;&#160;See Note 1. &#8220;Reorganization
Proceedings of Palco and its Subsidiaries&#8211;Execution of Settlement Term Sheet&#8221; to
the financial statements included in the Company&#8217;s Quarterly Report on Form 10-Q
for the quarter ended March 31, 2008 (<font style="DISPLAY: inline; FONT-WEIGHT: bold">&#8220;</font>N<font style="DISPLAY: inline; FONT-WEIGHT: bold">ote 1&#8221;</font>).&#160;&#160;On July
11, 2008, the Bankruptcy Court entered an order approving the motion that had
been filed seeking approval of the Settlement Term Sheet.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On July
15, 2008, the Bankruptcy Court (a) denied the Motion for Stay pending appeal,
but delayed the finality of the Confirmation Order until July 25, 2008, to allow
the Indenture Trustee to seek further relief from the Fifth Circuit, and (b)
granted the Request for Direct Appeal.&#160;&#160;The Bankruptcy Court also
indicated in its ruling that (y) the appropriate amount of a bond for any stay
pending appeal of the Confirmation Order is $176 million, and (z) such stay
would also be conditioned on the Indenture Trustee agreeing to provide $25
million of debtor-in-possession financing to Scopac, $5 million of
debtor-in-possession financing to Palco (to be subordinate to the Palco&#8217;s
secured debt), a program pursuant to which Scopac would provide discounted logs
to Palco, and a legal opinion that the debtor-in-possession facilities and the
discount log program do not violate the terms of the Indenture governing the
Timber Notes.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
ultimate outcomes of the anticipated appeal of the Confirmation Order and of the
Bankruptcy Cases are impossible to predict, and there can be no assurance that
the MRC/Marathon Plan will become effective.&#160;&#160;As noted above,
consummation of the MRC/Marathon Plan would result in the loss entirely of the
Company&#8217;s indirect equity interest in Palco and Palco&#8217;s subsidiaries, including
Scopac.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Agreement
with the PBGC</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Company has previously disclosed that, under the Employee Retirement Income
Security Act of 1974 <font style="DISPLAY: inline; FONT-WEIGHT: bold">(&#8220;ERISA&#8221;</font>), if Palco&#8217;s pension
plan (the <font style="DISPLAY: inline; FONT-WEIGHT: bold">&#8220;Palco Pension
Plan&#8221;</font>) were to be terminated under certain circumstances, the Company
would be jointly and severally liable for any unfunded obligations with respect
to the Palco Pension Plan (see Note 1).&#160;&#160;The MRC/Marathon Plan
includes a provision pursuant to which the Palco Pension Plan would be assumed
by the entity (<font style="DISPLAY: inline; FONT-WEIGHT: bold">&#8220;Newco&#8221;</font>)<font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font>that would succeed the
Debtors under the MRC/Marathon Plan.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On July
10, 2008, the Company and the Pension Benefit Guaranty Corporation (the <font style="DISPLAY: inline; FONT-WEIGHT: bold">&#8220;PBGC&#8221;</font>) entered into an
agreement (the <font style="DISPLAY: inline; FONT-WEIGHT: bold">&#8220;PBGC
Agreement&#8221;</font>) pursuant to which the Company essentially agreed, among other
things, that should the PBGC elect to terminate the Palco Pension Plan in the
future, the Company would continue to be liable for any unfunded obligations
then outstanding with respect to the Palco Pension Plan.&#160;&#160;If such a
termination was to be initiated, the Company expects it would first take actions
to assume sponsorship of the Palco Pension Plan in order to avoid such
termination.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The PBGC
Agreement terminates on the earliest of (i) the fifth anniversary of the
effective date of the agreement, (ii) the date the Palco Pension Plan is assumed
by the Company, (iii) the date the Palco Pension Plan is terminated under
certain standard termination procedures set forth in ERISA, or (iv) the date the
Palco Pension Plan is properly merged into another plan in accordance with ERISA
and the Internal Revenue Code.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The PBGC
Agreement is attached hereto as Exhibit 10.1 and is incorporated herein by
reference.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
9.01.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Financial
Statements and Exhibits.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Exhibits</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="12%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      10.1</font></div>
            </td>
            <td valign="top" width="88%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Agreement
      dated July 10, 2008 between The Pension Benefit Guaranty Corporation and
      the Company</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SIGNATURES</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td valign="top" width="43%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td colspan="2" valign="top" width="34%">
              <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">MAXXAM
      INC.</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="43%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="30%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
          </tr>
          <tr>
            <td valign="top" width="43%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Date:&#160;&#160;&#160;July
      16, 2008&#160;</font></div>
            </td>
            <td valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">By:</font></div>
            </td>
            <td valign="top" width="30%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">/s/&#160;M.
      Emily Madison</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="43%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: -9.9pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Name:&#160;</font></div>
            </td>
            <td valign="bottom" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">M.
      Emily Madison</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="43%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Title:&#160;</font></div>
            </td>
            <td valign="top" width="30%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Vice
      President, Finance</font></div>
              <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">
          <tr>
            <td colspan="2" valign="top" width="78%">
              <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">EXHIBIT
      INDEX</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="15%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline">Exhibit Number</font></font></div>
            </td>
            <td valign="top" width="63%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline">Description</font></font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="15%">
              <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">10.1</font></div>
            </td>
            <td valign="top" width="63%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Agreement
      dated July 10, 2008 between The Pension Benefit Guaranty Corporation and
      the Company</font></div>
            </td>
          </tr>
      </table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0105FMS8.VM.DOC</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <hr style="COLOR: black" noshade size="2"><br></body>
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maxxam_8k.htm
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):
July 10
, 2008
MAXXAM
INC.
(Exact
name of Registrant as Specified in its Charter)
Delaware
(State or
other jurisdiction of incorporation)
1-3924
(Commission
File Number)
95-2078752
(I.R.S.
Employer Identification Number)
1330
      Post Oak Boulevard
Suite
      2000
Houston,
      Texas
(Address
      of Principal Executive Offices)
77056
(Zip
      Code)
Registrant's
telephone number, including area code:
(713) 975-7600
Not
Applicable
(Former
name, former address and
former
fiscal year, if changed since last report)
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:

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 14d-2(b) 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 Material Definitive Agreement.
Background
MAXXAM Inc. (the
"Company"
) has previously
disclosed that on January 18, 2007, The Pacific Lumber Company, an indirect
wholly owned subsidiary of the Company (
"Palco"
), and Palco's
subsidiaries, including Scotia Pacific Company LLC (
"Scopac"
), filed separate
voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy
Code.  Palco, Scopac and Palco's other subsidiaries are collectively
referred to herein as the
"Debtors."
On the January 30, 2008 deadline
established by the Bankruptcy Court, the Debtors filed an amended joint plan of
reorganization (the
"Joint
Plan"
) with the Bankruptcy Court.  That same day, Scopac alone,
and Palco and its subsidiaries other than Scopac (collectively, the
"Palco Debtors"
) as a group,
filed separate alternative stand-alone plans of reorganization (the
"Alternative
Plans"
).  The Joint Plan and Alternative Plans were
subsequently withdrawn.
Two other plans of reorganization were
filed on the January 30, 2008 deadline.  The first was a plan (the
"MRC/Marathon Plan"
)
proposed (and later amended) by Mendocino Redwood Company (
"MRC"
) and Palco's principal
creditor, Marathon Structured Finance Fund L.P. (
"Marathon"
).  The
second was a plan (the
"Noteholder Plan"
) proposed
(and later amended and modified) by the indenture trustee (the
"Indenture Trustee"
) on behalf
of the holders (the
"Timber
Noteholders"
) of Scopac's $713.8 million principal amount (as of December
31, 2006) of Timber Collateralized Notes (the
"Timber
Notes"
).  The MRC/Marathon Plan would reorganize and continue
the businesses of the Debtors.  It also provides for virtually all of
the creditor classes other than Marathon to receive substantial cash
payments.  The Noteholder Plan effectively provides for an auction of
Scopac's timberlands to the highest bidder.  It does not address the
Palco Debtors.  Both the MRC/Marathon Plan and the Noteholder Plan
would result in the loss entirely of the Company's indirect equity interests in
Palco and Palco's subsidiaries, including Scopac.
Recent
Developments in the Bankruptcy Proceedings
On July
8, 2008, the Bankruptcy Court entered an order that, among other things,
confirmed the MRC/Marathon Plan and denied confirmation of the Noteholder Plan
(the
"Confirmation
Order"
).
On July
9, 2008, the Indenture Trustee filed a notice of appeal and an emergency motion
for a stay of the Confirmation Order pending appeal (the
"Motion for
Stay"
).  Other entities, including Scopac and certain
individual Timber Noteholders, also filed notices of appeal and joined in the
Indenture Trustee's Motion for Stay.  The Indenture Trustee also
requested direct appeal of the Confirmation Order (the
"Direct Appeal Request"
) to
the Fifth Circuit Court of Appeals (the
"Fifth
Circuit"
).  On July 10-11, 2008, the Bankruptcy Court held an
evidentiary hearing on the Motion for Stay and Direct Appeal
Request.
The
Company has previously described a Settlement Term Sheet (the
"Settlement Term Sheet"
)
entered into on May 1, 1988 by MRC, Marathon, and the Company and certain of its
affiliates, including the Palco Debtors.  See Note 1. "Reorganization
Proceedings of Palco and its Subsidiaries–Execution of Settlement Term Sheet" to
the financial statements included in the Company's Quarterly Report on Form 10-Q
for the quarter ended March 31, 2008 (
"
N
ote 1"
).  On July
11, 2008, the Bankruptcy Court entered an order approving the motion that had
been filed seeking approval of the Settlement Term Sheet.
On July
15, 2008, the Bankruptcy Court (a) denied the Motion for Stay pending appeal,
but delayed the finality of the Confirmation Order until July 25, 2008, to allow
the Indenture Trustee to seek further relief from the Fifth Circuit, and (b)
granted the Request for Direct Appeal.  The Bankruptcy Court also
indicated in its ruling that (y) the appropriate amount of a bond for any stay
pending appeal of the Confirmation Order is $176 million, and (z) such stay
would also be conditioned on the Indenture Trustee agreeing to provide $25
million of debtor-in-possession financing to Scopac, $5 million of
debtor-in-possession financing to Palco (to be subordinate to the Palco's
secured debt), a program pursuant to which Scopac would provide discounted logs
to Palco, and a legal opinion that the debtor-in-possession facilities and the
discount log program do not violate the terms of the Indenture governing the
Timber Notes.
The
ultimate outcomes of the anticipated appeal of the Confirmation Order and of the
Bankruptcy Cases are impossible to predict, and there can be no assurance that
the MRC/Marathon Plan will become effective.  As noted above,
consummation of the MRC/Marathon Plan would result in the loss entirely of the
Company's indirect equity interest in Palco and Palco's subsidiaries, including
Scopac.
Agreement
with the PBGC
The
Company has previously disclosed that, under the Employee Retirement Income
Security Act of 1974
("ERISA"
), if Palco's pension
plan (the
"Palco Pension
Plan"
) were to be terminated under certain circumstances, the Company
would be jointly and severally liable for any unfunded obligations with respect
to the Palco Pension Plan (see Note 1).  The MRC/Marathon Plan
includes a provision pursuant to which the Palco Pension Plan would be assumed
by the entity (
"Newco"
)
that would succeed the
Debtors under the MRC/Marathon Plan.
On July
10, 2008, the Company and the Pension Benefit Guaranty Corporation (the
"PBGC"
) entered into an
agreement (the
"PBGC
Agreement"
) pursuant to which the Company essentially agreed, among other
things, that should the PBGC elect to terminate the Palco Pension Plan in the
future, the Company would continue to be liable for any unfunded obligations
then outstanding with respect to the Palco Pension Plan.  If such a
termination was to be initiated, the Company expects it would first take actions
to assume sponsorship of the Palco Pension Plan in order to avoid such
termination.
The PBGC
Agreement terminates on the earliest of (i) the fifth anniversary of the
effective date of the agreement, (ii) the date the Palco Pension Plan is assumed
by the Company, (iii) the date the Palco Pension Plan is terminated under
certain standard termination procedures set forth in ERISA, or (iv) the date the
Palco Pension Plan is properly merged into another plan in accordance with ERISA
and the Internal Revenue Code.
The PBGC
Agreement is attached hereto as Exhibit 10.1 and is incorporated herein by
reference.
Item
9.01.                         Financial
Statements and Exhibits.
(c)          Exhibits
10.1
Agreement
      dated July 10, 2008 between The Pension Benefit Guaranty Corporation and
      the Company
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
      INC.
Date:   July
      16, 2008
By:
/s/ M.
      Emily Madison
Name:
M.
      Emily Madison
Title:
Vice
      President, Finance
EXHIBIT
      INDEX
Exhibit Number
Description
10.1
Agreement
      dated July 10, 2008 between The Pension Benefit Guaranty Corporation and
      the Company
0105FMS8.VM.DOC