Item 8.01. Other Events.

In 2004, a subsidiary of MAXXAM Inc. (the "Company") and a third party real estate development company formed a joint venture, RMCAL Development LP ("RMCAL"), to develop a residential parcel in the Company's real estate development in Rancho Mirage, California. In connection with the formation of RMCAL, the Company sold a 50% interest in the parcel and contributed the remainder of the parcel to the joint venture in return for a 50% non-controlling interest in RMCAL. The Company accounts for its investment in RMCAL under the equity method of accounting.

As previously disclosed, RMCAL's development loan matured in March 2009 and RMCAL's managing partner, which had certain guaranty obligations with respect to the development loan, was engaged in discussions with the lender to renew the facility. During the second quarter of 2009, it became evident the venture would require substantial additional capital to continue its business and in June 2009, the Company agreed to sell its entire interest in RMCAL for a nominal amount, in accordance with a provision in the limited partnership agreement. Once the transaction closes, the Company will no longer have any ownership interest in the venture. As a result of these developments, the Company will record a $4.2 million impairment charge in the second quarter of 2009 related to this investment.