Asarco asks for approval of $157.75 million settlement with U.S. and state government agencies

By Reshmi Basu

New York, Oct. 26 - Asarco LLC asked for court approval of a $157.75 million settlement with U.S. environmental agencies and state governments, which would resolve a dispute over allegations that the company was responsible for environment damage at four superfund sites in the states of Kansas, Missouri and Oklahoma, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

According to the motion, the government had asked for more than $700 million for clean-up of the sites.

Under the agreement:

• The U.S. Environmental Agency will have a $91 million allowed general unsecured claim against the company;

• The State of Kansas will have a $3.25 million allowed general unsecured claim;

• The State of Missouri will have a $3.25 million allowed general unsecured claim;

• The State of Oklahoma will have a $7.25 million allowed general unsecured claim;

• The U.S. department of interior on behalf of various Indian tribes, including the Cherokee nation, will have a $2 million allowed general unsecured claim for past natural resource damage; and

• The department of interior, the Kansas department of health and environment, the Missouri department of natural resources and the state of Oklahoma will have a $51 million joint, indivisible allowed general unsecured claim.

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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