-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 ORL125XxeU85izw7ghr7ZEgJ3bmN7YffkeBhzGOqvxfKjdUTGFhGCR4u6//GpFTY
 AmGBZpx1Dgfoof4CfWzBCw==

<SEC-DOCUMENT>0001177254-05-000048.txt : 20050621
<SEC-HEADER>0001177254-05-000048.hdr.sgml : 20050621
<ACCEPTANCE-DATETIME>20050621123432
ACCESSION NUMBER:		0001177254-05-000048
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20050620
FILED AS OF DATE:		20050621
DATE AS OF CHANGE:		20050621

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DANIELSON HOLDING CORP
		CENTRAL INDEX KEY:			0000225648
		STANDARD INDUSTRIAL CLASSIFICATION:	COGENERATION SERVICES & SMALL POWER PRODUCERS [4991]
		IRS NUMBER:				956021257
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		40 LANE ROAD
		CITY:			FAIRFIELD
		STATE:			NJ
		ZIP:			07004
		BUSINESS PHONE:		973-882-9000

	MAIL ADDRESS:	
		STREET 1:		40 LANE ROAD
		CITY:			FAIRFIELD
		STATE:			NJ
		ZIP:			07004

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MISSION INSURANCE GROUP INC
		DATE OF NAME CHANGE:	19900826

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MISSION EQUITIES CORP
		DATE OF NAME CHANGE:	19770921

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			SZ INVESTMENTS LLC
		CENTRAL INDEX KEY:			0001093566
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-06732
		FILM NUMBER:		05907454

	BUSINESS ADDRESS:	
		STREET 1:		TWO NORTH RIVERSIDE PLAZA
		CITY:			CHICAGO
		STATE:			IL
		ZIP:			60606
		BUSINESS PHONE:		3124541800

	MAIL ADDRESS:	
		STREET 1:		TWO NORTH RIVERSIDE PLAZA
		CITY:			CHICAGO
		STATE:			IL
		ZIP:			60606
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>formfour_ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2005-06-20</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000225648</issuerCik>
        <issuerName>DANIELSON HOLDING CORP</issuerName>
        <issuerTradingSymbol>DHC</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001093566</rptOwnerCik>
            <rptOwnerName>SZ INVESTMENTS LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>TWO NORTH RIVERSIDE PLAZA</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>CHICAGO</rptOwnerCity>
            <rptOwnerState>IL</rptOwnerState>
            <rptOwnerZipCode>60606</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock, $0.10 par value</value>
            </securityTitle>
            <transactionDate>
                <value>2005-06-20</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>X</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>9028562</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>6.00</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>19060298</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock, $0.10 par value</value>
            </securityTitle>
            <transactionDate>
                <value>2005-06-20</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>X</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>1588235</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>6.00</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>3352941</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>As Managing Member</value>
                    <footnoteId id="F1"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Warrant to purchase common stock (right to buy)</value>
                <footnoteId id="F2"/>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>6.00</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2005-06-20</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>X</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>10031736</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0.00</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2005-05-31</value>
            </exerciseDate>
            <expirationDate>
                <value>2005-06-21</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock, par value $0.10</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>9028562</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
        <derivativeTransaction>
            <securityTitle>
                <value>Warrant to purchase common stock (right to buy)</value>
                <footnoteId id="F2"/>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>6.00</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2005-06-20</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>X</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>1764706</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0.00</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2005-05-31</value>
            </exerciseDate>
            <expirationDate>
                <value>2005-06-21</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock, par value $0.10</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>1588235</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>As Managing Member</value>
                    <footnoteId id="F3"/>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">These shares are directly beneficially owned by EGI-Fund (05-07) Investors, L.L.C. (&quot;Fund 05-07&quot;) and indirectly beneficially
owned by each
of (i) the Reporting Person, as the sole managing member of Fund 05-07; (ii) Zell General
Partnership, Inc., the managing member of the Reporting Person; and (iii) Chai Trust Company, L.L.C., the trustee of trusts
which indirectly own the Reporting Person.</footnote>
        <footnote id="F2">The Issuer issued in a rights offering at no charge one non-transferrable warrant with respect to each share of its Common
Stock outstanding as of the close of business on May 27, 2005. Each warrant gave the holder the right to purchase 0.90
shares of the Issuer's Common Stock at a price of $6.00 per share. Each warrant holder could also elect to purchase
additional shares at the exercise price if other warrant holders did not fully exercise their warrants.</footnote>
        <footnote id="F3">These warrants are directly beneficially owned by Fund 05-07 and indirectly beneficially owned by each of (i) the Reporting
Person, as the sole managing member of Fund 05-07; (ii) Zell General Partnership, Inc., the managing member of the Reporting
Person; and (iii) Chai Trust Company, L.L.C., the trustee of trusts
which indirectly own the Reporting Person.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>Donald J. Liebentritt, Vice President</signatureName>
        <signatureDate>2005-06-21</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----