Redding-based Sierra Pacific Industries filed documents in federal bankruptcy court Monday that spell out the terms of a $45 million offer to purchase Pacific Lumber Co.’s mill in Scotia.

Although separate, the SPI bid, which was previously hinted at in court, is being made under the reorganization plan for Scotia Pacific Co.’s largest creditor, Timber Noteholders, which is owed more than $700 million and holds SCOPAC’s 210,000 acres of timberlands as collateral.

The more than 15-month bankruptcy hearing is scheduled to resume Thursday to hear closing arguments regarding the two remaining viable plans offered by Timber Noteholders, which aims to liquidate the timberlands, and the plan from Mendocino Redwood Co. and Marathon Structured Finance Fund, which hope to secure the lands and continue the timber operations.

SPI, owned by timber mogul Red Emerson, manages approximately 2 million acres of forestland in California and Washington and is the nation’s second-largest manufacturer of lumber through its 15 sawmills.

SPI indicated it wants to purchase PALCO’s industrial property, the Scotia saw and planning mills, their associated lumber marketing and distribution operations, and the 32.5-megawatt biomass co-generation power plant.

According to court documents, SPI pledges to invest more than $75 million to enhance the performance of Scotia’s sawmill, as well as to relocate to Scotia SPI’s Arcata mill facility, which it has owned and operated continuously for more than 50 years.

Those plans include reconstructing the Scotia facility to add new computerized and state-of-the art dry kilns and to have separate small and large log mills designed to handle and cut larger logs, including redwood, Douglas fir and whitewoods.

Although SPI is seeking the right to purchase 100 percent of SCOPAC’s harvested logs from an owner that has yet to be determined, the court filings show SPI is hoping to draw on logs from the entire region to output lumber volume that will create more jobs.

“After completion, the remodeled Scotia Mill and the new SPI facility will employ approximately 300 people and will bring much needed financial stability to Scotia, CA and the surrounding community,” the document states.

SPI’s current employees at its Arcata mill will be given the opportunity to work at the new facility, the document stated.

SPI media representative Mark Lathrop could not be reached by deadline for comment.

Although he hadn’t reviewed the filings, Frank Bacik, PALCO vice president and general counsel, said the late-arriving bid is expected as the hearings near conclusion.

Bacik said Judge Richard Schmidt expressed two significant concerns during the confirmation hearings earlier in the month, including how a cash-strapped SCOPAC would continue its operations during a potential six-month-long auction process and what would happen with PALCO’s mill, which has been dependent on SCOPAC’s logs.

“I assume this is the (Noteholders’) effort to address those concerns,” Bacik said.

There are still some significant hurdles for SPI’s bid, as Schmidt closed the submission of evidence May 2.

“The significance of these filings remains to be seen,” Bacik said.

Timber Noteholders also submitted documents to the court Monday stating it has secured up to $10 million in financing from Lehman Commercial Paper Inc. to fund SCOPAC’s operations and administrative costs during the post-confirmation, pre-sale period as contemplated in the Indenture Trustee’s Plan.

Although its attorneys argue that evidence presented during the confirmation hearing shows SCOPAC has sufficient cash to operate, Timber Noteholders stated in the filings that the financing gives additional certainty and feasibility to their plan to expose SCOPAC’s industrial timberlands to the open market, which they said will result in the highest and best return to the creditors.

Timber Noteholders has requested an emergency hearing on Wednesday at 9:30 a.m. to consider its motion seeking a limited reopening of the evidentiary record relating to considering the SPI bid and the Lehman Brothers Inc. lending agreement.