Lawyers Say Asarco Owes $2.66 Billion to Asbestos Victims

March 12, 2007 - According to court papers filed on March 5th, Tucson-based Asarco LLC, a miner, smelter and refiner of copper with mines in Arizona and smelters in Texas and Arizona, owes asbestos victims nearly $3 billion. 

According to an article in the Arizona Star, the numbers in the filing are being disputed by Asarco, its parent company Asarco Inc. and the company’s general creditors. “[Asarco] submitted papers the same day that valued Asarco's potential asbestos debts at between $180 million and $490.3 million,” says the article.

The company, which sought bankruptcy protection in 2005, is said to face 95,000 asbestos claims.  According to the article, Asarco also faces allegations that it owes $6 billion to the federal government, 16 states, and two American Indian tribes for environmental cleanup costs.

A trial will be held in September 2007 to determine the true value of the asbestos claims. The company has asked the judge to hold a separate trial on the environmental claims.
The trials will help determine the company's value and how much it owes, possibly forcing creditors to accept less than they might get by pursuing claims separately, the article states.

Asarco also maintains that its subsidiaries, including Cement Asbestos Products Co. and Lake Asbestos of Quebec Ltd. Asarco Inc., should be responsible for their own asbestos claims.