Asarco files amended disclosure statement; hearing to pick up May 15

By Jennifer Lanning Drey

Portland, Ore., April 28 - Asarco LLC filed an amended disclosure statement for its plan of reorganization on Monday that increases the estimated recovery for holders of demand claims and unsecured asbestos personal injury claims, according to a filing with the U.S. Bankruptcy Court for the Southern District of Texas.

Specifically, the amended disclosure statement increases the estimated recovery for holders of demand claims and unsecured asbestos personal injury claims to 100% from a previous 60% to 75%.

The claims will be channeled through the asbestos trust, which will receive cash and 100% of the stock in reorganized Covington.

The hearing for approval of the disclosure statement began Tuesday and will continue on May 15, according to an attorney.

Creditor treatment

Treatment of plan creditors will include:

• Holders of $441 million to $612 million in administrative claims, $4 million in priority tax claims, convenience claims and priority claims will recover 100% in cash;

• Holders of $28 million to $33 million in secured claims will either be paid in full in cash, plus interest, or have their claims reinstated;

• Holders of $2.1 billion to $2.3 billion in general unsecured claims will recover a percentage of cash based on the size of their claim plus interests in the litigation trusts and the residual assets liquidation trust;

• Holders of demand claims and unsecured asbestos personal injury claims will recover 100% through the asbestos trust;

• Holders of $4 million to $15 million in late-filed claims, subordinated claims, interests in Asarco, interests in the asbestos subsidiary debtors and interests in other subsidiary debtors will receive no distribution.

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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