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 event reported:	December 11, 2001


                          DANIELSON HOLDING CORPORATION
                         --------------------------------
                  (Exact Name of Registrant as Specified in Charter)


Delaware                            1-6732                   95-6021257
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(State of Incorporation)            (Commission File         (IRS Employer
                                     Number)                 Identification No.)



767 Third Avenue,          New York, New York          10017
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(Address of Principal Executive Offices)             (Zip Code)

Registrant's telephone number, including area code:  (212) 888-0347

Item 5.  Other Events

On December 11, 2001, the Board of Directors of Danielson Holding
Corporation unanimously approved a plan for its primary operating
subsidiary, National American Insurance Company of California ("NAICC")
to terminate certain lines of business. This plan calls for NAICC to
exit the workers' compensation line of insurance in all states, the
non-standard private passenger automobile insurance program written
outside of California and to significantly reduce premiums written
in the commercial automobile insurance program.  The non-renewal of
certain policies had been initiated in the summer of 2001.

NAICC's business objective is to underwrite business that is expected
to yield an underwriting profit.  NAICC has made a determination that
certain lines of insurance will not be profitable in the current rate
environment.  Competitive and regulatory pressures have resulted in a
market for premium rates in these lines that the Company believes is
below a level necessary in order to achieve profit.  The Company
estimates that over a two year period the total hard dollar costs
associated with the downsizing will be approximately $500,000, exclusive
of goodwill write-offs of $739,000.  The effect of this plan would be a
substantial reduction to the current underwriting operations of NAICC
with a view towards increasing overall profitability.  This plan
will result, by the end of 2003, in a reduction of NAICC's total
written premiums to approximately one third the amount written in 2001
and a 50% reduction of NAICC's workforce, related employment expenses
and other general and administrative expenses. The remaining lines
written by NAICC would be non-standard private passenger automobile
in the state of California and commercial automobile in certain western
states,including California at a net written premium run rate of
$30 million.  However, this number may change substantially if the rate
environment materially improves.

                                   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 thereunto duly authorized.


                           DANIELSON HOLDING CORPORATION





                                            By:/s/ David M. Barse
                                                   David M. Barse
                                                   President

					       /s/ Michael Carney
						   Michael Carney
						   Chief Financial Officer