Asarco Creditors Seek Greenlight To Sue Executives

Law360, New York (August 8, 2007, 12:00 AM EDT) -- Creditors of Asarco LLC have asked a bankruptcy court for permission to sue former executives, claiming they stripped the beleaguered copper mining company of valuable assets and threatened its long-term viability.

In papers filed Wednesday in the U.S. Bankruptcy Court for the Southern District of Texas, the Official Committee of Unsecured Creditors called for authority to file action for breach of fiduciary duty against the company’s former directors and officers.

Filing an emergency motion for authority to assert causes of action, the committee said an investigation...
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