Asarco plan vote solicitation suspended

By Caroline Salls

Pittsburgh, Oct. 21 - Asarco LLC obtained court approval to suspend the solicitation and balloting processes related to its plan of reorganization and the competing plan submitted by its parent company, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

According to the motion, balloting agent AlixPartners, LLP mailed solicitation packages to creditors on Sept. 29 that contained a copy of Asarco's previously approved plan. The plan implemented the $2.6 billion sale of its operating assets to Sterlite (USA), Inc., which has since fallen apart after the plan sponsor said it did not intend to close on the plan funding transaction.

On Oct. 17, the bankruptcy court suspended all deadlines for objecting to plan confirmation and for confirmation discovery until further order.

The company said an order suspending the solicitation and balloting processes was necessary to avoid creditor confusion.

As previously reported, the disclosure statements related to competing plans of reorganization filed by Asarco LLC and parent company Asarco Inc. were approved on Sept. 23, with plan confirmation hearings set to begin on Nov. 17.

Asarco, a Tucson, Ariz., mining company, filed for bankruptcy on Aug. 9, 2005. Its Chapter 11 case number is 05-21207.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.