Asarco seeks appointment of official asbestos claimants committee

By Caroline Salls

Pittsburgh, July 18 - Asarco LLC asked the U.S. Bankruptcy Court for the Southern District of Texas to instruct the U.S. Trustee to appoint an official committee of asbestos claimants for the company's Chapter 11 bankruptcy case, according to a Friday court filing.

Asarco said appointment of an asbestos committee will assure creditors that their claims are adequately represented during the negotiation of terms of a plan of reorganization that is expected to include an asbestos claims channeling injunction.

According to the motion, the official committee of unsecured creditors for the company's subsidiary debtors already represents creditors asserting asbestos-related claims against the subsidiary debtors.

Asarco said it is asking the court to direct the U.S. Trustee to appoint the current members of the subsidiary committee and three new members who have direct asbestos-related premises liability claims against Asarco to represent the entire class of creditors with asbestos claims against Asarco and the subsidiary debtors.

Although a number of direct, asbestos-related premises liability claims have been asserted against Asarco, the company said no asbestos claimant sits on its official committee of unsecured creditors.

"Asbestos claimants have distinct claims and a unique role to play in the reorganization cases that will be more efficiently served by a committee comprised solely of asbestos creditors," Asarco said in the motion.

Asarco asked the court to schedule a July 28 hearing on the committee appointment motion.

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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