ASARCO bankruptcy and environmental liabilities may be resolved soon
ASARCO, a mining and smelting company that has been embroiled in a complicated and contentious bankruptcy fight over billions of dollars in claims, is now before a south Texas bankruptcy judge in Corpus Christi. The claims against ASARCO include $11 billion for cleanup costs at 75 sites nationwide and 95,000 asbestos claims valued at another $2.7 billion, as well as hundreds of millions of dollars in other creditors’ claims. The total amount of ASARCO’s debt has dwindled as ASARCO has negotiated settlements with the various claimants, but no one knows exactly how much ASARCO still owes or whether the sale of its assets will cover those liabilities. Settlement talks about the asbestos-related injury claims are ongoing, and some of the environmental cleanup claims have already been settled. Those assets include three copper mines in Arizona, a smelter and a refinery, along with $500 million in cash. Bids are due April 30, and the bankruptcy judge must approve any sale.
In nearby Brownsville, Texas, a trial is scheduled in May to determine whether Grupo Mexico and its owners illegally stripped ASARCO of two Peruvian copper mines—the company’s most valuable assets—and thereby forced ASARCO into bankruptcy. The estimated value of the mines is $7 billion to $8 billion. Grupo Mexico and its owners deny any wrongdoing.
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