Asarco requests three-month exclusivity extension to find plan sponsor

By Caroline Salls

Pittsburgh, Oct. 1 - Asarco LLC requested an extension to its exclusive period to file a plan of reorganization and solicit votes on the plan, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

The company wants to extend its exclusive plan-filing period to Feb. 11 from Nov. 12 and the solicitation period to April 14, 2008 from Jan. 14.

According to the motion, a number of potential plan sponsors are being invited to conduct due diligence on the company's mines and facilities in mid-to-late October.

Once a plan sponsor is identified, Asarco said it will negotiate a final plan sponsor agreement, and it expects to be able to file a plan by early 2008 if a suitable plan sponsor is selected.

As previously reported, the company's major bondholder, Harbinger Capital Partners Master Fund I, Ltd., has appealed the company's most recent exclusivity extension, and the company said that appeal is still pending.

Asarco, a Tucson, Ariz., mining company, filed for bankruptcy on Aug. 9, 2005. Its Chapter 11 case number is 05-21207.

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