North America

A U.S. federal judge is expected to decide on Monday whether Grupo Mexico or India's Sterlite Industries will control Asarco LLC, bringing the U.S. copper miner a step closer to leaving bankruptcy after four years, Reuters reported. At stake are Asarco's copper mines in Arizona and $7.5 billion in damages related to a piece of Peruvian miner Southern Copper Corp that had been owned by Asarco. Grupo Mexico, the largest copper miner in Mexico, bought Asarco in 1999 but lacks control because of the bankruptcy. A U.S.

Mexican miner Grupo Mexico SAB de CV said on Thursday it has offered to extend for two years the collective bargaining agreement of workers at Asarco LLC, who have supported a rival's bid for control of the bankrupt U.S. copper miner, Reuters reported. Grupo Mexico, which owns but does not control Asarco, has been engaged in a battle with India's Sterlite Industries for over a year for Asarco, which is seeking to emerge from Chapter 11 bankruptcy protection after four years.

The long battle for Asarco LLC may be nearing its conclusion, as the two groups vying for control of the bankrupt U.S. copper miner started their final arguments on Tuesday following a two-week hearing in federal court in Texas, Reuters reported. Mexican miner Grupo Mexico SAB de CV, which owns Asarco but does not control it because of the bankruptcy, and India's Sterlite Industries have been engaged for over a year in a bidding war for Asarco, which is seeking to emerge from Chapter 11 protection after four years.

Canadian companies facing bankruptcy are being given access to a new $1-billion lifeline from Ottawa and major financial firms to provide breathing space to restructure operations and return to solvency, Export Development Canada said yesterday. The EDC said it has agreed to become the top contributor to a new fund that would act as the bank of last resort to struggling companies who are unable to obtain credit through normal channels, The London Free Press reported on a Canadian Press story.

BlackBerry maker Research in Motion says Canadians want and expect the Canadian government to prevent the $1.1-billion sale of Nortel Network's coveted wireless assets to Ericsson of Sweden, The Associated Press reported. Canada-based RIM issued a statement Wednesday after the deadline passed for appeals to challenge a bankruptcy court ruling allowing the Nortel sale to the Swedish telecommunications firm. RIM says the transaction must be reviewed to ensure that Canada's national interests are met. RIM wants Canada's industry minister to help negotiate a deal between RIM and Nortel.

Mexican miner Grupo Mexico SAB de CV said on Monday it would raise its offer for Asarco LLC to $2.2029 billion in cash, as it battles India's Sterlite Industries for control of the bankrupt U.S. copper miner, Reuters reported. In documents filed with the U.S. bankruptcy court in Corpus Christi, Texas, Grupo Mexico said its offer would include full repayment of administrative, priority, secured and asbestos personal injury claims, as well as payment in full on general unsecured claims.

Shermag Inc., which is operating under court protection from creditors, said Wednesday that the Quebec Superior Court has approved the purchase of the company by Groupe Bermex Inc. for $1.25 million, The Canadian Press reported. The company said the court has also approved an interim financing deal that will see Bermex contribute of up to $3 million to finance Shermag until the deal closes. Under a deal, Bermex would provide $1.25 million in exchange for nearly 41.7 million new Shermag shares, representing about 70 per cent of the issued and outstanding shares in the company.

Prime Minister Stephen Harper is showing little inclination to intervene in the sale of Nortel's prime assets to a foreign buyer, saying he is reluctant to erect protectionist barriers in Canada while preaching the benefits of freer trade in the Americas, The Globe and Mail reported. Mr. Harper rejected a call from Research In Motion Ltd. for the government to simply block the sale of Nortel Networks Corp.'s wireless assets to Ericsson for $1.13-billion, but left open the prospect of a review under the Investment Canada Act.

Canadian bankruptcies rose 51.6 percent in June compared to a year earlier as more consumers were unable to pay debts, but business bankruptcies rose only modestly despite the recession, a government report showed. The number of consumer bankruptcies in June rose 54.3 percent to 10,823 from June 2008, while business bankruptcies rose 10.8 percent to 515, the Office of the Superintendent of Bankruptcy Canada said in a report.

Lehman Brothers Holdings Inc.'s Bermuda-based life insurance unit, Lehman Re, filed for bankruptcy protection, citing alleged shortfalls on its reinsurance obligations and lawsuits against it in the US, The Royal Gazette reported. The petition for Chapter 15 bankruptcy in Manhattan court on Thursday listed more than $1 billion in debts and as much as $1 billion in assets. Under Chapter 15, companies can win protection from US lawsuits and organise US creditors to help with the company's main bankruptcy in another country.