Tucson-based Asarco LLC owes asbestos victims as much as $2.66 billion, the victims' lawyers say.
The estimate, contained in a March 5 court filing, is disputed by Asarco, its parent company Asarco Inc. and general creditors. They submitted papers the same day that valued Asarco's potential asbestos debts at between $180 million and $490.3 million.
"Everybody is talking about the same thing, but they are pointing their fingers in different directions," said John H. Tate II, a San Antonio-based lawyer for asbestos victims who may file claims against the company.
Asarco and its subsidiaries face 95,000 asbestos claims and allegations that it owes $6 billion to the federal government, 16 states and two American Indian tribes for environmental cleanup costs. The company cited the claims as the main reason it sought bankruptcy protection in Corpus Christi, Texas, in 2005.
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In September, Asarco will go before U.S. Bankruptcy Judge Richard S. Schmidt for a trial on the value of the asbestos claims. The company has asked Schmidt to hold a separate trial on the environmental claims.
The Colorado School of Mines and the city of El Paso filed objections this week to a valuation trial over 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.
Phone messages left for Asarco CEO Joseph Lapinsky and a lawyer for Asarco's unsecured creditors, Derek J. Baker, got no response.
Lawyers for the asbestos victims claim that Asarco is responsible for any harm caused by its units, including Cement Asbestos Products Co. and Lake Asbestos of Quebec Ltd. Asarco Inc., Asarco and the company's committee of unsecured creditors said the subsidiaries should pay any asbestos claims.
The unsecured creditors submitted the lowest estimate of Asarco's asbestos liability — $180 million. The committee may wind up competing for payments with two asbestos victims' committees if Asarco can't afford to pay all the claims.
Asarco estimated its liabilities at between $242.1 million and $446.9 million. Asarco Inc. put the debt at $490.3 million.
Asarco is controlled by a court-appointed board, which is fighting with owner Grupo Mexico over assets, including a $1 billion stake in Southern Copper Corp., the owner of copper mines in Peru and Mexico.