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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>March 18, 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: 0pt; BORDER-TOP-COLOR: gray; PADDING-TOP: 0pt; BORDER-RIGHT-COLOR: gray"
    vAlign=top width="100%">
      <P style="MARGIN-RIGHT: -10.8pt; 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>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="94%"border=0>

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    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt"
    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: 0pt; PADDING-TOP: 0pt"
    vAlign=top colSpan=5>
      <P style="MARGIN-RIGHT: -10.8pt; 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: 0pt; PADDING-TOP: 0pt"
    vAlign=top width="34%">
      <P style="MARGIN-RIGHT: -10.8pt; 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: 0pt; PADDING-TOP: 0pt"
    vAlign=top width="37%">
      <P style="MARGIN-RIGHT: -10.8pt; 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: 0pt; PADDING-TOP: 0pt"
    vAlign=top colSpan=5>
      <P style="MARGIN-RIGHT: -10.8pt; 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: 0pt; PADDING-TOP: 0pt"
    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: 0pt; PADDING-TOP: 0pt"
    vAlign=top width="37%">
      <P style="MARGIN-RIGHT: -10.8pt; TEXT-ALIGN: center" align=center><FONT
      size=1></FONT>&nbsp;</P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt"
    vAlign=top colSpan=5>
      <P style="MARGIN-RIGHT: -10.8pt; TEXT-ALIGN: center" align=center><FONT
      size=1></FONT>&nbsp;</P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt"
    vAlign=top width="34%">
      <P style="MARGIN-RIGHT: -10.8pt; 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: 0pt; PADDING-TOP: 0pt"
    vAlign=top colSpan=3>
      <P style="MARGIN-RIGHT: -10.8pt; 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: -10.8pt; 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: 0pt; PADDING-TOP: 0pt"
    vAlign=top colSpan=2>
      <P style="MARGIN-RIGHT: -10.8pt; TEXT-ALIGN: center" align=center><FONT
      size=1></FONT>&nbsp;</P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt"
    vAlign=top colSpan=2>
      <P style="MARGIN-RIGHT: -10.8pt; TEXT-ALIGN: center"
      align=center><BR><BR></P>
      <P style="MARGIN-RIGHT: -10.8pt; TEXT-ALIGN: center" align=center><B><FONT
      size=2>77056</FONT></B></P></TD></TR>
  <TR>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt"
    vAlign=top colSpan=3>
      <P style="MARGIN-RIGHT: -10.8pt; TEXT-ALIGN: center" align=center><FONT
      size=2>(Address of principal executive offices)</FONT></P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt"
    vAlign=top colSpan=2>
      <P style="MARGIN-RIGHT: -10.8pt; TEXT-ALIGN: center" align=center><FONT
      size=1></FONT>&nbsp;</P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt"
    vAlign=top colSpan=2>
      <P style="MARGIN-RIGHT: -10.8pt; TEXT-ALIGN: center" align=center><FONT
      size=2>(Zip Code)</FONT></P></TD></TR>
  <TR>
    <TD
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    vAlign=top colSpan=2>
      <P style="MARGIN-RIGHT: -10.8pt; TEXT-ALIGN: center" align=center><FONT
      size=1></FONT>&nbsp;</P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt"
    vAlign=top colSpan=2>
      <P style="MARGIN-RIGHT: -10.8pt; TEXT-ALIGN: center" align=center><FONT
      size=1></FONT>&nbsp;</P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt"
    vAlign=top colSpan=3>
      <P style="MARGIN-RIGHT: -10.8pt; 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: 0pt; PADDING-TOP: 0pt"
    vAlign=top colSpan=2>
      <P style="MARGIN-RIGHT: -10.8pt; TEXT-ALIGN: center" align=center><FONT
      size=1></FONT>&nbsp;</P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt"
    vAlign=top colSpan=2>
      <P style="MARGIN-RIGHT: -10.8pt; TEXT-ALIGN: center" align=center><FONT
      size=1></FONT>&nbsp;</P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt"
    vAlign=top colSpan=3>
      <P style="MARGIN-RIGHT: -10.8pt; 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: 0pt; PADDING-TOP: 0pt"
    vAlign=top colSpan=7>
      <P style="MARGIN-RIGHT:-10.8pt;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>&#141; 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>&#141; 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>&#141; 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>&#141; 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>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT
size=1></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>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width=416 border=0>
   <TR>
    <TD
    style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; BORDER-LEFT-COLOR: gray; BORDER-BOTTOM-COLOR: gray; PADDING-BOTTOM: 12pt; BORDER-TOP-COLOR: gray; PADDING-TOP: 0pt; BORDER-RIGHT-COLOR: gray"
    vAlign=top width="23%">
      <P><B><FONT size=2>Item 1.01.</FONT></B></P></TD>
    <TD
    style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 12pt; PADDING-TOP: 0pt"
    vAlign=top width="76%">
      <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 March 18, 2005, the Registrant's indirect wholly owned subsidiary, The
Pacific Lumber Company ("Palco"), and Palco's subsidiary, Britt Lumber Co.,
Inc., as borrowers, and Bank of America, N. A. ("Bank of America") entered into
an amendment and limited waiver ("Amendment No. 4") to the Credit Agreement
among borrowers and Bank of America (the "Credit Agreement"). Amendment No. 4
modifies the Credit Agreement by, among other things, (a) increasing the amount
able to be borrowed by at least $3.0 million as the result of the pledge by
Palco's parent, MAXXAM Group Inc, of a $2.0 million certificate of deposit (the "MGI
Pledge"), and a decrease of $1.0 million in the borrowing base reserve, (b)
requiring the borrowers to deliver to Bank of America documents necessary to
perfect Bank of America's security interests in all vehicles owned by the
borrowers, (c) requiring the borrowers to deliver to Bank of America weekly
cash-flow projections from March 21, 2005 through April 15, 2005, (d) continuing
until April 15, 2005, a limited waiver previously granted by Bank of America, of
the default caused or expected to be caused by the borrowers' failure to attain
a specified level of EBITDA (as defined in the Credit Agreement) during the
fiscal quarters ended December 31, 2004 (and, pursuant to Amendment No. 4, March
31, 2005), as required under Section 7.27 of the Credit Agreement, (e) requiring
the borrowers to continue to pay interest at the default rate, which is 2% per
annum higher than the rate that would otherwise apply under the Credit Agreement
and (f) requiring the borrowers to pay an aggregate fee of $300,000. </FONT></P>
<P
style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify"><FONT
size=2>Palco and various of its affiliates assigned their rights under a
settlement agreement with several insurance companies. Subject to certain
limitations, this action will enable the borrowers to borrow 95% of the
receivable payable to Palco under the settlement agreement (of which $1,385,000 is
to be paid by April 15, 2005, and the remaining $1,700,000 is to be paid
by May 18, 2005). The security agreement evidencing the MGI Pledge terminates on
the later of any subsequent amendment to the Credit Agreement or repayment of
the obligations under the Credit Agreement. This description of Amendment No. 4
is qualified in its entirety by the actual provisions of Amendment No. 4, a copy
of which is attached to this Current Report on Form 8-K as Exhibit 10.1 and
incorporated by reference into this "Item 1.01. Entry into a Material Definitive
Agreement."</FONT></P>
<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: 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify"><FONT
size=2>Palco is discussing with Bank of America long-term amendments that would
cure the existing default and avoid further anticipated defaults under the
Credit Agreement and give Palco necessary ongoing liquidity beyond the April 15,
2005, limited waiver expiration date provided for in Amendment No. 4. Also, as
previously disclosed, Palco is continuing its efforts to obtain the clearance of
the California North Coast Regional Water Quality Control Board of sufficient
timber harvesting to allow Palco to sustain its current level of operations and
to enable Palco's wholly owned subsidiary, Scotia Pacific Company LLC ("Scotia
Pacific"), to fund required interest payments due in July 2005 on Scotia
Pacific's approximately $750 million of Timber Notes. There can be no assurance
that either of these efforts will succeed. </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: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify"><FONT
size=2>Unless Palco is able to resolve both its bank line of credit problem and
the regulatory harvest limitation problem and Scotia Pacific is able to avoid
default on its Timber Notes, Palco and its subsidiaries, including Scotia
Pacific, expect that they will be forced to take extraordinary actions, which
may include: reducing expenditures by laying off employees and shutting down
various operations; seeking other sources of liquidity, such as from asset
sales; and seeking protection by filing under the United States Bankruptcy
Code.</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>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width=211 border=0>
    <TR>
    <TD
    style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 12pt; PADDING-TOP: 0pt"
    vAlign=top width="45%">
      <P><B><FONT size=2>Item 8.01.</FONT></B></P></TD>
    <TD
    style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 12pt; PADDING-TOP: 0pt"
    vAlign=top width="54%">
      <P><B><FONT size=2>Other Events.</FONT></B></P></TD></TR></TABLE>
<P
style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify"><FONT
size=2>On March 21, 2005, Palco issued a press release reporting that it and
Britt Lumber Co., Inc., had amended the Credit Agreement and secured the limited
waiver. The press release is attached to this Current Report on Form 8-K as
Exhibit 99.1 and incorporated by reference into this "Item 8.01. Other Events."
</FONT></P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><FONT
size=2></FONT>&nbsp;</P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width=354 border=0>
  <TR>
    <TD
    style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 12pt; PADDING-TOP: 0pt"
    vAlign=top width="27%">
      <P><FONT size=2>Item 9.01.</FONT></P></TD>
    <TD
    style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 12pt; PADDING-TOP: 0pt"
    vAlign=top width="72%">
      <P><FONT size=2>Financial Statements and
Exhibits.</FONT></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; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt"
    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: 0pt; PADDING-TOP: 0pt"
    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: 0pt; PADDING-TOP: 0pt"
    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: 0pt; PADDING-TOP: 0pt"
    vAlign=top width="85%">
      <P
      style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 3pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT
      size=2>Amendment No. 4 to the Credit Agreement and Limited Waiver, dated
      as of March 18, 2005, among The Pacific Lumber Company, Britt Lumber Co.,
      Inc. and Bank of America, N.A. (filed herewith).</FONT></P></TD></TR>
  <TR>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt"
    vAlign=top width="14%">
      <P style="MARGIN: 3pt 0pt 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><FONT
      size=2>99.1</FONT></P></TD>
    <TD
    style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt"
    vAlign=top width="85%">
      <P style="MARGIN: 3pt 0pt 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT
      size=2>Press Release of The Pacific Lumber Company dated March 21, 2005
      (filed herewith).</FONT></P></TD></TR></TABLE>
<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>SIGNATURES</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-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>
<P
style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify"><FONT
size=2></FONT>&nbsp;</P>
<TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width=640 border=0>
  <TR>
    <TD
    style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 36pt; PADDING-TOP: 0pt"
    vAlign=top width="7%">
      <P><FONT size=2>Date:</FONT></P></TD>
    <TD
    style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 36pt; PADDING-TOP: 0pt"
    vAlign=top colSpan=2>
      <P><FONT size=2>March 22, 2005</FONT></P></TD>
    <TD
    style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 36pt; PADDING-TOP: 0pt"
    vAlign=top colSpan=2>
      <P><FONT size=2>MAXXAM INC.</FONT></P></TD>
    <TD
    style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt"
    colSpan=3>
      <P><FONT size=1></FONT>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt"
    colSpan=2>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD
    style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt"
    vAlign=top colSpan=2>
      <P><FONT size=2>By:</FONT></P></TD>
    <TD
    style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt"
    vAlign=top colSpan=3>
      <P><U><FONT size=2>/s/ Bernard L. Birkel</FONT></U></P></TD>
    <TD
    style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt"
    width="25%">
      <P><FONT size=1></FONT>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt"
    colSpan=2>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD
    style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt"
    vAlign=top colSpan=2>
      <P><FONT size=2>Name:</FONT></P></TD>
    <TD
    style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt"
    vAlign=top colSpan=2>
      <P><FONT size=2>Bernard L. Birkel</FONT></P></TD>
    <TD
    style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt"
    colSpan=2>
      <P><FONT size=1></FONT>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt"
    colSpan=2>
      <P><FONT size=1></FONT>&nbsp;</P></TD>
    <TD
    style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt"
    vAlign=top colSpan=2>
      <P><FONT size=2>Title:</FONT></P></TD>
    <TD
    style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0pt; PADDING-TOP: 0pt"
    vAlign=top colSpan=4>
      <P><FONT size=2>Secretary &amp; Senior Assistant General
    Counsel</FONT></P></TD></TR>
  <TR>
    <TD width=48></TD>
    <TD width=228></TD>
    <TD width=11></TD>
    <TD width=37></TD>
    <TD width=94></TD>
    <TD width=39></TD>
    <TD width=19></TD>
    <TD width=164></TD></TR></TABLE>
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size=2></FONT>&nbsp;</P>
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size=2></FONT>&nbsp;</P>
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size=2></FONT>&nbsp;</P>
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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": "05697441"}, "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):
March 18, 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 March 18, 2005, the Registrant's indirect wholly owned subsidiary, The
Pacific Lumber Company ("Palco"), and Palco's subsidiary, Britt Lumber Co.,
Inc., as borrowers, and Bank of America, N. A. ("Bank of America") entered into
an amendment and limited waiver ("Amendment No. 4") to the Credit Agreement
among borrowers and Bank of America (the "Credit Agreement"). Amendment No. 4
modifies the Credit Agreement by, among other things, (a) increasing the amount
able to be borrowed by at least $3.0 million as the result of the pledge by
Palco's parent, MAXXAM Group Inc, of a $2.0 million certificate of deposit (the "MGI
Pledge"), and a decrease of $1.0 million in the borrowing base reserve, (b)
requiring the borrowers to deliver to Bank of America documents necessary to
perfect Bank of America's security interests in all vehicles owned by the
borrowers, (c) requiring the borrowers to deliver to Bank of America weekly
cash-flow projections from March 21, 2005 through April 15, 2005, (d) continuing
until April 15, 2005, a limited waiver previously granted by Bank of America, of
the default caused or expected to be caused by the borrowers' failure to attain
a specified level of EBITDA (as defined in the Credit Agreement) during the
fiscal quarters ended December 31, 2004 (and, pursuant to Amendment No. 4, March
31, 2005), as required under Section 7.27 of the Credit Agreement, (e) requiring
the borrowers to continue to pay interest at the default rate, which is 2% per
annum higher than the rate that would otherwise apply under the Credit Agreement
and (f) requiring the borrowers to pay an aggregate fee of $300,000.
Palco and various of its affiliates assigned their rights under a
settlement agreement with several insurance companies. Subject to certain
limitations, this action will enable the borrowers to borrow 95% of the
receivable payable to Palco under the settlement agreement (of which $1,385,000 is
to be paid by April 15, 2005, and the remaining $1,700,000 is to be paid
by May 18, 2005). The security agreement evidencing the MGI Pledge terminates on
the later of any subsequent amendment to the Credit Agreement or repayment of
the obligations under the Credit Agreement. This description of Amendment No. 4
is qualified in its entirety by the actual provisions of Amendment No. 4, a copy
of which is attached to this Current Report on Form 8-K as Exhibit 10.1 and
incorporated by reference into this "Item 1.01. Entry into a Material Definitive
Agreement."
Palco is discussing with Bank of America long-term amendments that would
cure the existing default and avoid further anticipated defaults under the
Credit Agreement and give Palco necessary ongoing liquidity beyond the April 15,
2005, limited waiver expiration date provided for in Amendment No. 4. Also, as
previously disclosed, Palco is continuing its efforts to obtain the clearance of
the California North Coast Regional Water Quality Control Board of sufficient
timber harvesting to allow Palco to sustain its current level of operations and
to enable Palco's wholly owned subsidiary, Scotia Pacific Company LLC ("Scotia
Pacific"), to fund required interest payments due in July 2005 on Scotia
Pacific's approximately $750 million of Timber Notes. There can be no assurance
that either of these efforts will succeed.
Unless Palco is able to resolve both its bank line of credit problem and
the regulatory harvest limitation problem and Scotia Pacific is able to avoid
default on its Timber Notes, Palco and its subsidiaries, including Scotia
Pacific, expect that they will be forced to take extraordinary actions, which
may include: reducing expenditures by laying off employees and shutting down
various operations; seeking other sources of liquidity, such as from asset
sales; and seeking protection by filing under the United States Bankruptcy
Code.
Item 8.01.
Other Events.
On March 21, 2005, Palco issued a press release reporting that it and
Britt Lumber Co., Inc., had amended the Credit Agreement and secured the limited
waiver. The press release is attached to this Current Report on Form 8-K as
Exhibit 99.1 and incorporated by reference into this "Item 8.01. Other Events."
Item 9.01.
Financial Statements and
Exhibits.
c) Exhibits
Exhibit
Number
Description
10.1
Amendment No. 4 to the Credit Agreement and Limited Waiver, dated
      as of March 18, 2005, among The Pacific Lumber Company, Britt Lumber Co.,
      Inc. and Bank of America, N.A. (filed herewith).
99.1
Press Release of The Pacific Lumber Company dated March 21, 2005
      (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:
March 22, 2005
MAXXAM INC.
By:
/s/ Bernard L. Birkel
Name:
Bernard L. Birkel
Title:
Secretary & Senior Assistant General
    Counsel