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Preston Lumber Forced Into Bankruptcy

Closed and in receivership since February, Preston Lumber Co., Cloverdale, Ca., has been forced into Chapter 7 involuntary bankruptcy.

Preston had been in the process of selling its mill properties in Cloverdale and Philo, Ca., for 91.3 million to RJS Timber Products to help repay a major creditor, Sumitomo Bank of San Francisco.

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The sale and the state receivership process were halted when three other creditors (Acme Rigging & Supply, Ukiah, Ca.; Shuster Transportation & Logging Co., Willits, Ca., and Gregory Mathis) persuaded a federal bankruptcy judge to appoint a court trustee to help administer the debt. Trustee Raymond Carey decided the lumber company should be liquidated to get its bills paid.

In February, Sumitomo Bank filed a lawsuit against Preston Lumber, naming owner James H. Blevins, David Snodgrass and several related companies, Pacific West Forest Products, J.H. Blevins Co. and Preston Planing & Dry Kiln. The bank asked the court for a temporary restraining order to stop alleged sales of company assets and to appoint a receiver to assume control of company operations.

The suit claimed that preston had at least twice removed two or more truckloads of logs and "apparently sold them out of the ordinary course of business."

In court papers, Jeffry Locke said that the day after he was appointed receiver, Preston issued four checks totaling $285,860. Two of the checks went to two of Blevins' sons. said Locke. He also said there was evidence that assets were being removed and sold.

Preston's attorney responded that at the time the defendants were unaware of a court-appointed receiver or a court restraining order.

Only last year Preston was ranked by The Press Democrdt as one of the area's top 25 fastest growing companies, with 100 employees and 1993 revenues of $28 million. According to court papers, the firm estimated it owed $3 million to vendors and suppliers.

Murrelet Habitat May Conflict With Salvage plan

The critical habitat proposed for the threatened marbled murrelet potentially conflicts with the timber salvage amendment contained in the rescissions package signed by President Clinton.

The off-limits habitat presented by the U.S. Fish & Wildlife Service encompasses 4.45 million acres in Washington, Oregon and California, including about 50,000 acres of private land.

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Sign Sets At Lumber City

Ten years after Augora Hills, Ca., passed an ordinance outlawing towering pole signs, the local Lumber City has agreed to take its down.

Lumber City was among a dozen businesses that sued the city over the measure. But, on the eve of the court ruling, owner Jess Ruf agreed to remove his pole sign by June 1, 1996in exchange for a prominent monument sign and the guarantee that he will be able to secure the permits needed to convert the store into a California Do-it Center.

The judge, incidentally, issued a tentative ruling that the pole sign ordinance contradicts a state business code.

Parker Named Hampton CEO

Ronald C. Parker is the new ceo at Hampton Affiliates, Portland, Or., replacing John Hampton, ceo for the past 20 years, who remains chairman of the board of directors and its executive committee.

Parker. chief financial officer for the last nine years at Roseburg Forest Products and previously with Medford Corp., will lead the companY