Asarco seeks four-month exclusivity extension, cites case complexity

By Caroline Salls

Pittsburgh, May 15 - Asarco LLC requested a four-month extension to its exclusive periods to file a plan of reorganization and solicit votes on the plan, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

The company wants to extend its exclusive plan filing period to Oct. 6 from June 5 and the solicitation period to Dec. 8, 2006 from Aug. 4.

According to the motion, the extension is needed because of the size and complexity of its case.

Asarco said it is alleged to be responsible for environmental clean-up costs at several sites around the country, is burdened by more than 95,000 asbestos-related personal-injury claims and has nearly $490 million in funded bond debt and lease obligations.

In addition, Asarco said its case involves unique labor issues, and it was experiencing a labor strike at its copper-mining and smelting facilities when it filed for bankruptcy, which limited its production.

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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