Asarco seeks approval of $27.97 million for settlement of non-asbestos toxic claims

By Rebecca Melvin

New York, Jan. 24 - Asarco LLC has agreed to grant $27.97 million in general unsecured claims under a compromise and settlement of non-asbestos toxic tort claims and settlement of certain minors' claims, according to Thursday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

About 850 claims were filed against Asarco for a total of at least $1.47 billion alleging traditional toxic tort, personal injury, environmental property damage and related breach of settlement, according to the filing. The amount doesn't include many claims with unstated amounts.

Under the proposed compromise and settlement with claimants, $20.78 million in general unsecured claims would be paid to those who allege they suffered physical harm or property damage from exposure to lead or other toxic substances resulting from Asarco operations located at Tar Creek, Okla. That amount includes $13.85 million for 147 claimants in one group and $6.9 million for 73 claimants in a separate group. The original claim sum was $1.03 billion.

General unsecured claims of $4.8 million would be paid to claimants relating to operations at Hayden, Ariz. Originally, the Hayden claims totaled $340 million.

General unsecured claims of $2.39 million will be paid to two groups of claimants relating to operations of Asarco's El Paso, Texas, smelter operations. The amount includes $1.78 million for one group of 35 claimants and $607,500 for a group with 16 claimants.

El Paso smelter claims consist of $12 million identified, but there are claims with no amount stated that are sought. Certain damage claims arising from Tar Creek will be addressed in a separate mediation scheduled Jan. 29. If settlement can't be reached, those claims will be estimated during proceedings scheduled to begin March 3.

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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