Asarco obtains approval of exclusivity extension

By Michelle Anderson

Rochester, N.H., April 11 - Asarco LLC obtained approval for its exclusivity extension Wednesday, according to a source familiar with the hearing.

The judge extended Asarco's exclusive right to file a plan until Aug. 9.

A press release regarding the decision was expected but had not yet been released as of press time.

On April 3, the company's order for an exclusivity extension was vacated because it was entered prematurely, according to a filing with the U.S. Bankruptcy Court for the Sothern District of Texas.

Subsequently, the company agreed to a bridge extension of its plan-filing period to Wednesday's hearing. The exclusive plan-filing period was set to expire on April 6.

As previously reported, the company wanted 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.

In the April 3 motion the company stated it had 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 is a Tucson, Ariz.-based mining company. It filed for bankruptcy on Aug. 9, 2005. Its Chapter 11 case number is 05-21207.

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