Grupo Unit Appeals $1.4 Billion Ruling In Asarco Case

A unit of mining giant Grupo Mexico SAB is appealing a ruling that it is on the hook for $1.38 billion in cash and a stake in lucrative Peruvian copper operations to Asarco LLC, in a case alleging Grupo fraudulently shifted the shares, tipping Asarco into bankruptcy, Bankruptcy Law360 reported. Asarco first sued Grupo subsidiary Americas Mining Corp. in February 2007, arguing that Grupo Mexico's 2003 transfer of Asarco's 54.2 percent ownership in Southern Copper Corp., formerly Southern Peru Copper Corp., to AMC was fraudulent. Asarco contended that the sale, which allegedly undervalued Asarco's stake by almost $500 million, stripped the company of its most profitable division when it was needed the most. The transfer essentially pushed the company into bankruptcy court, it claimed. The company also alleged that Grupo Mexico bought out Asarco in 1999 specifically to obtain control of Asarco's ownership of the SPCC and put it out of reach of Asarco's creditors. Read more. (Subscription required.)