Asarco asks for mediation to resolve dispute over asbestos liability estimation

By Reshmi Basu

New York, Aug. 31 - Asarco, LLC asked a federal judge to order a mediation between warring parties in order to resolve a dispute over the estimation of the company's asbestos liabilities, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

On Nov. 13, a hearing will be held to determine what Asarco's responsibility will be for the asbestos-related liability of two of its subsidiaries, Lac d'Amiante du Quebec, Ltee and Capco Pipe Co., Inc.

According to the emergency motion, the company requested for mediation to take place in advance of that proceeding, given the complexity of the issues, including the extensive differences in damage estimates and the number of parties involved.

Asarco contended that mediation "would facilitate and maximize the chances of a successful resolution of the asbestos alter-ego estimate."

The company also requested that the court appoint a mediator.

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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