Asarco granted three-month exclusivity extension

By Caroline Salls

Pittsburgh, July 23 - Asarco LLC obtained 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's exclusive plan filing period was extended to Nov. 12 from Aug. 9 and the solicitation period to Jan. 14 from Oct. 9.

The extension granted by the court was one month shorter than the company's original request to extend the plan-filing period to Dec. 10 and the solicitation period to Feb. 11, 2008.

According to the motion, Asarco stated it had complex and lengthy 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 reorganization plan.

In addition, Asarco said it needs time to estimate derivative asbestos and environmental claims as well as toxic tort claims. On top of environmental issues, the company said it also must resolve labor contracts, disputes with equity ownership as well as nearly $490 million in funded bond debt and lease obligations.

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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