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Asarco plan confirmation issue moves to district court; emergence expected by end of 2009
By Caroline Salls
Pittsburgh, Sept. 1 - Now that the bankruptcy court has made a recommendation concerning Asarco LLC's plan of reorganization confirmation, the matter has been referred to U.S. District Court judge Andrew S. Hanen for a final decision, according to a Grupo Mexico, SAB de CV news release.
As previously reported, judge Richard Schmidt of the U.S. Bankruptcy Court for the Southern District of Texas recommended Monday that the district court confirm the plan submitted by Asarco parents Asarco Inc. and Grupo Mexico subsidiary Americas Mining Corp. and deny confirmation of Asarco LLC's plan.
"Assuming judge Hanen accepts the recommendation, returning Asarco to the Grupo Mexico family will not only permit the company's creditors to be fully paid on their claims, plus interest, but will also allow Asarco to emerge from bankruptcy considerably stronger as part of a global mining conglomerate that will stand among the world's leaders," Grupo Mexico general counsel Alberto De La Parra said in the release.
According to the release, Asarco is expected to emerge from bankruptcy by the end of 2009 if Hanen accepts the bankruptcy court's recommendation.
"Our board will consider the court's recommendations and finding and then, in consultation with our advisors, major creditor constituencies and Sterlite, will determine the next steps that are in the best interest of the debtors and their estates," Asarco LLC president and chief executive officer Joseph F. Lapinsky said in an Asarco LLC news release.
Grupo Mexico said it expects to operate Asarco's Amarillo, Hayden, Ray, Silver Bell and Mission facilities after the company emerges from bankruptcy.
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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