SECURITIES AND EXCHANGE COMMISSION
                                  WASHINGTON, D.C.  20549

                                         FORM 8-K

                     CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF
                            THE SECURITIES EXCHANGE ACT OF 1934

             Date of Report (date of earliest event reported):  June 29, 1999


                                MAXXAM GROUP HOLDINGS INC.
                  (Exact name of Registrant as Specified in its Charter)


                                         DELAWARE
                      (State or other jurisdiction of incorporation)


                                         333-18723
                                 (Commission File Number)


                                        76-0518669
                          (I.R.S. Employer Identification Number)


        5847 SAN FELIPE, SUITE 2600                                77057
              HOUSTON, TEXAS                                    (Zip Code)
           (Address of Principal
            Executive Offices)


Registrant's telephone number, including area code:  (713) 975-7600


ITEM 5.     OTHER EVENTS

            Attached hereto as Exhibit 99.1 is a press release dated June 29,
1999 announcing that Kaiser Aluminum Corporation, in which the Registrant
directly owns a 35.4% interest, will include a net pre-tax gain of
approximately $13 million in its financial results for the second quarter
of 1999 as a result of two significant non-operating items:  a gain on the
sale of its interest in a wheel joint venture and a non-cash charge for
asbestos-related claims.  This press release is being filed with the
Securities and Exchange Commission pursuant to Rule 135c under the
Securities Act of 1933.


                                        SIGNATURES

            Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.

                                                  MAXXAM GROUP HOLDINGS INC.
                                                         (Registrant)


Date:  July 2, 1999                 By:              /S/ PAUL N. SCHWARTZ
                                                       Paul N. Schwartz
                                                 President and Chief Financial
                                                            Officer