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.