Asarco Accuses Parent Company Of Fraud

Law360, New York (February 5, 2007, 12:00 AM EST) -- Bankrupt mining company Asarco LLC filed suit against Grupo Mexico SA on Friday, accusing its parent company of contributing to its debt by fraudulently shifting Asarco’s stake in lucrative Peruvian copper mines to another company.

In its complaint, filed in the U.S. Bankruptcy Court for the Southern District of Texas, Asarco accused Grupo Mexico of engaging in the “fraudulent transfer” of its 54.2% ownership interest in Southern Peru Copper Corp. to Americas Mining Corp.

Asarco says the March 2003 sale, which undervalued Asarco’s stake by almost...
To view the full article, register now.