Judge rules Asarco parent made fraudulent transfer of Southern Peru Copper interest

By Caroline Salls

Pittsburgh, Sept. 3 - Asarco LLC said U.S. district judge Andrew Hanen ruled on Aug. 30 that parent Americas Mining Corp. made a fraudulent transfer of Asarco's controlling interest in Southern Peru Copper Corp. "with actual intent to hinder or delay some of Asarco's creditors," according to a news release.

Hanen also found that Americas Mining had an agreement with Asarco's directors "to abandon their duties to Asarco and Asarco's creditors and instead act to structure and accomplish the SPCC transfer, knowing that the transaction as contemplated would constitute a transfer in fraud of Asarco's creditors," the release said.

According to the release, Asarco is seeking disgorgement of the Southern Peru interest that Americas Mining transferred to itself in 2003 and the $1.85 billion in dividends that would have been paid to Asarco since 2003 if the transfer had not taken place.

Asarco is seeking more than $8 billion in relief under the lawsuit.

The judge has asked the lawsuit parties to submit briefs outlining an appropriate remedy by Sept. 15.

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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