Troubled lumber company Scotia Pacific Company LLC is working with UBS Securities to restructure $734 million of timber-collateralized notes. Scotia, a subsidiary of Houston-based MAXXAM Group Inc. is widely anticipated to miss its $27 million coupon payment due July 20, and in a June 9, Securities & Exchange Commission filing announced that its noteholders hired law firm Bingham McCutchen LLP as counsel and investment bank Houlihan Lokey Howard & Zukin as financial advisor.

Whether the company can come up with the cash to make its coupon payment hinges on its ability to harvest timber from its northern California properties, which serve as collateral in the deal.

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