Asarco $27.97 million toxic tort claims settlement approved

By Caroline Salls

Pittsburgh, Feb. 20 - Asarco LLC obtained court approval of a settlement of non-asbestos toxic tort claims, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, Asarco has agreed to grant $27.97 million in general unsecured claims under the settlement.

According to the motion, 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. The amount does not include many claims with unstated amounts.

Under the settlement, $20.78 million in general unsecured claims will 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 the Tar Creek site in Oklahoma. 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 will be paid to claimants in connection with operations at Hayden, Ariz. Originally, the Hayden claims totaled $340 million.

And, general unsecured claims of $2.39 million will be paid to two groups of claimants in connection with 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.

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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