Asarco granted 12th exclusivity extension in light of failed deal with Sterlite

By Jennifer Lanning Drey

Portland, Ore., Jan. 13 - Asarco LLC obtained a 12th extension Tuesday to its exclusive periods to file a plan of reorganization and solicit votes on the plan from the U.S. Bankruptcy Court for the Southern District of Texas, according to an attorney.

The exclusive plan-filing period was extended to March 17 from Jan. 16 and the solicitation period to May 18.

When requesting the extension, Asarco said it continued to assess options for emergence from bankruptcy, including entering into a settlement and amended agreement with Sterlite (USA) Inc., pursuing a breach of contract action against Sterlite, selling the company's assets to another buyer and filing a stand-alone plan.

The company said it had been in constant communication with its major creditor constituents and continued to work toward global resolution of their major contingent liabilities while also negotiating a consensual amended Chapter 11 plan.

The motion did not look to re-impose exclusivity on the parent company, as the court previously modified exclusivity to allow Asarco's parent to file a plan.

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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