Pacific Lumber Co. Chief Financial Officer Gary Clark announced his resignation from Scotia Pacific Co. in court Thursday as fractures among the MAXXAM Inc. subsidiaries caused the timber company’s corporate entities to line up on different sides of the bankruptcy case.

PALCO attorneys first mentioned they were working toward a deal with MRC in court Tuesday.

Under the deal, MRC would increase its cash offer for the SCOPAC lands and PALCO would withdraw its own reorganization plan.