Asarco plan confirmation postponed due to failed mediation with Sterlite

By Jennifer Lanning Drey

Portland, Ore., Nov. 21 - Asarco LLC's hearing for confirmation of its plan of reorganization has been postponed indefinitely in light of failed mediation and the termination of its purchase contract with Sterlite (USA) Inc., according to a source involved in the case.

As previously reported, Asarco's plan implemented the $2.6 billion sale of its operating assets to Sterlite. Asarco terminated the contract with Sterlite after Sterlite said it would not close the sale unless Asarco agreed to a price reduction.

Asarco and Sterlite were unable to reach a resolution on the agreement after participating in five days of court-mandated mediation sessions in October and November, according to the source.

Discussions between the parties are ongoing but no further hearings or mediation have been scheduled, the source said.

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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