Pacific Lumber is now owned by Charles Hurwitz and his company, Maxxam Corp. Hurwitz acquired Pacific Lumber in a heavily leveraged buyout in the 1980s and increased the rate of tree-cutting.
The offer by Don and Doris Fisher of San Francisco to invest $200 million depends on Hurwitz completely giving up Pacific Lumber, the San Francisco Chronicle reported. The Fishers already own Mendocino Redwood Co.
Many environmentalists say that Mendocino has been a responsible logger.
"They are clearly a cut above the other redwood companies," said Paul Mason, a Sierra Club lobbyist.
Pacific Lumber's fate is in the hands of a bankruptcy judge in Texas. On Friday, he gave Maxxam a deadline for presenting a reorganization plan to the court.
An earlier plan, which called for selling off much of Pacific Lumber's remaining holdings to pay debt, was rejected by the creditors.
Notable deaths of 2014 [PHOTOS]