Asarco request for appointment of chief restructuring officer draws objection from Americas Mining

By Caroline Salls

Pittsburgh, Nov. 23 - Asarco LLC's official committee of unsecured creditors' request for appointment of a chief restructuring officer drew objection from Americas Mining Corp., the 100% owner of Asarco, Inc., according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

Asarco, Inc. is the sole member of Asarco, LLC, according to the filing.

According to the objection, the motion is an "outrageous attempt by the committee to turn the Bankruptcy Code and the rules of procedure on their heads, all for a nonexistent emergency."

"Not only does the committee seek the appointment of a chief restructuring officer - a remedy not recognized in or authorized by the Bankruptcy Code - but also an injunction to the [company], the board of directors and the shareholder on less than 24 hours' notice."

The objection said the injunction seeks to direct the shareholder and the board of directors to cease all governance activities with respect to the company and its assets and to order Asarco to disregard any directions received from the parent or the board of directors.

A hearing on appointment of a chief restructuring officer is scheduled for Tuesday.

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

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