Asarco permitted to end Sterlite agreement, draw on letter of credit

By Lisa Kerner

Charlotte, N.C., Nov. 30 - Asarco LLC was granted approval to terminate its Sterlite (USA) Inc. purchase and sale agreement and to draw on a related $50 million letter of credit, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, the district court confirmed the plan of reorganization proposed by Asarco parent companies Asarco Inc. and Americas Mining Corp. and denied confirmation of Asarco LLC's plan, which was based on the Sterlite purchase agreement.

Asarco, a Tucson mining company, filed for bankruptcy on Aug. 9, 2005. Its Chapter 11 case number is 05-21207.

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