Asarco requests eight-month exclusivity extension to resolve environmental, asbestos issues

By Caroline Salls

Pittsburgh, March 12 - Asarco LLC requested an extension to its exclusive periods to file a plan of reorganization and solicit votes on the plan, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

The company wants to extend its exclusive plan-filing period to Nov. 30, 2007 from April 6 and the solicitation period to Jan. 29, 2008 from June 6.

According to the motion, the company has complex environmental litigation and asbestos claim issues that must be resolved before it can secure new capital or exit financing, determine the size and treatment of an unsecured creditor class or prepare a disclosure statement with meaningful information on what creditors can expect to recover under a plan of reorganization.

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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