Asarco gets court OK to use Lehman Brothers as financial adviser

By Caroline Salls

Pittsburgh, Oct. 14 - Asarco LLC obtained court approval to hire Lehman Brothers Inc. as financial adviser in its Chapter 11 case, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

Duties of the financial adviser will include:

* Advising and assisting Asarco in formulating a plan and/or analyzing any proposed plan, including assisting in the plan negotiation and confirmation process;

* Providing financial advice and assistance in structuring any new securities to be issued in a restructuring transaction;

* Participating in negotiations among Asarco and its creditors, unions, suppliers, lessors and other interested parties;

* Reviewing and analyzing any proposals from third parties, including any proposals for debtor-in-possession financing and/or exit financing;

* Assisting with liquidity analysis;

* Reviewing and analyzing Asarco's business, operations, properties, financial condition and prospects and financial projections;

* Evaluating Asarco's debt capacity in light of its projected cash flows and assisting in determining an appropriate capital structure;

* Analyzing various restructuring scenarios and their potential impact on the recovery of stakeholders;

* Providing strategic advice on restructuring or refinancing Asarco's financial obligations; and

* Assisting Asarco in identifying, contacting and evaluating potential purchasers for any sale transaction.

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

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