The coast redwoods of Northern California are the tallest trees in the world. They can grow as high as a 35-story building and live for more than 2,000 years. The redwoods support spotted owls and other endangered species. They also contain vast seams of tightly grained mahogany “heartwood,” perfect for milling high-end decking or architectural beams. A single giant redwood — particularly an old-growth tree — can fetch as much as $100,000.
In the 1980s, the redwoods caught the attention of Houston businessman Charles Hurwitz. In 1986 Hurwitz bought the Pacific Lumber Co., the largest private owner of old-growth redwoods in the United States. He and his investment company, MAXXAM Inc., financed his takeover with $750 million in high-yield junk bonds arranged by Drexel Burnham Lambert’s Michael Milken. “I was attracted for the obvious reasons,” says Hurwitz. “Every day the trees grow, and you don’t pay taxes until you cut them down.”
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
