Peru

Several of Pacific Andes' major lenders believe that the fishing conglomerate is improperly using US and Peruvian bankruptcy laws to "derail" a planned sale of its Peruvian assets, Undercurrent News reported. In court filings on July 8, several creditor banks of the 16 Pacific Andes entities that declared bankruptcy in the US on June 30 questioned directors' motivations to have three Peruvian subsidiaries of the group file for bankruptcy under that country's laws rather than in the US.

Peru's government bankruptcy agency, Indecopi, said Tuesday it has officially opened an investigation into Doe Run Peru's financial situation, Dow Jones Daily Bankruptcy Review reported. An Indecopi spokeswoman said creditors have 30 days as of Monday to file credit recovery paperwork. The government has taken a hard line against the company in recent weeks, saying it would start the legal and regulatory process of removing Doe Run's ownership of the plant in the town of La Oroya.

Peru's Ministry for Mining and Energy said Tuesday it will begin the process of winding down Doe Run Peru's management of the country's only polymetallic smelter. Doe Run, a unit of U.S.-based Renco Group Inc., could also face insolvency and environmental proceedings against it by Peru's regulatory bodies, Osinergmin and OEFA, Dow Jones Daily Bankruptcy Review reported. Osinergmin supervises energy and mining investments, while OEFA is charged with the evaluation of environmental affairs.

Zinc companies in Peru, the world’s third-largest producer, will look to sell more concentrates overseas after the government said smelter Doe Run Peru may file for bankruptcy, according to a creditor, Bloomberg reported. A bankruptcy may take months to complete, said Carlos Galvez, chief financial officer of precious metals producer Cia. de Minas Buenaventura SA, a Doe Run Peru creditor. Doe Run, a unit of Renco Group Inc., may file for bankruptcy to restructure about $156 million of debt, Energy & Mines Minister Pedro Sanchez Gamarra said yesterday.

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.