Asarco parent affiliate to propose sponsored 'full payment plan'

By Caroline Salls

Pittsburgh, April 25 - Asarco LLC parent affiliate Grupo Mexico, SAB de CV intends to propose a sponsored reorganization plan through Asarco's court-approved auction process to ensure the company's creditors are paid full or unimpaired, according to a Grupo Mexico news release.

Although Grupo Mexico said it objects to the auction process, it is finalizing a proposal "in an effort to guarantee the fair valuation of Asarco LLC's assets and reestablish its control of the company."

According to the release, Grupo Mexico believes that with a full payment plan, there is no reason to accept any asset purchase proposal.

Grupo Mexico said its legal team is prepared to use all legal remedies to guarantee that Asarco's auction results in the full valuation of its assets.

Asarco, a Tucson, Ariz., mining company, filed for bankruptcy on Aug. 9, 2005 in the U.S. Bankruptcy Court for the Southern District of Texas. Its Chapter 11 case number is 05-21207.

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