Asarco exclusivity extension order vacated as premature; hearing set for April 11

By Caroline Salls

Pittsburgh, April 3 - Asarco LLC's exclusivity extension approval order filed Monday was vacated because it was entered prematurely, according to a filing with the U.S. Bankruptcy Court for the Southern District of Texas.

As a result, the company has agreed to a bridge extension of its plan-filing period to April 11, with the hearing on the balance of the request to be held that day.

The exclusive plan-filing period was set to expire on April 6.

As previously reported, 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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