Americas Mining Company, a Grupo Mexico Affiliate, Files Reorganization Plan to Retain...

Americas Mining Company, a Grupo Mexico Affiliate, Files Reorganization Plan to Retain Equity Interest in ASARCO LLC

Full Payment Plan Provides Highest Value Available to Satisfy
Allowed Claims of ASARCO LLC Creditors
PHOENIX--(Business Wire)--
Americas Mining Corporation ("AMC"), an affiliate of Grupo Mexico
SAB de CV (GMEXICO) submitted last evening a reorganization plan to
retain its equity interest in its wholly owned indirect subsidiary,
ASARCO LLC, by offering full payment to ASARCO's creditors in
connection with ASARCO's Chapter 11 case. The plan, which was
submitted to the Bankruptcy Court in connection with the full payment
plan offered to ASARCO's independent Board of Directors at a
Bankruptcy Court hearing in June, details the terms of its full
payment plan offering creditors a 100% recovery on their allowed
claims.

Under the proposal, AMC would provide up to $2.7 billion in cash
as well as a $440 million guarantee to assure payment of all allowed
creditor claims, including payment of liabilities relating to asbestos
and environmental claims. This contribution, together with the $1
billion in cash on hand at ASARCO and including the estimated value of
ASARCO LLC, which would remain liable to creditors, provides a total
consideration of approximately $6.74 billion, to be contrasted with
approximately $2.6 billion being made available under ASARCO's
competing plan, which is being sponsored by Sterlite. AMC's plan is
premised on the estimation of the approximate allowed amount of the
claims against ASARCO.

AMC believes that its plan provides superior value and most
certainty to ASARCO's creditors since it remains the only proposal
offering creditors full value for their allowed claims.

AMC has been seeking to reclaim full equity ownership of its
indirect wholly owned subsidiary ASARCO LLC since it filed for Chapter
11 protection in August 2005. Since that time, ASARCO has instead
pursued a process to sell its assets over AMC's objection and most
recently filed a plan with the Bankruptcy Court pursuant to which
ASARCO's assets would be sold to a competing bidder, Sterlite. AMC
asked the Bankruptcy Court to be allowed to file its own plan of
reorganization and was granted permission to file such a competing
reorganization plan. AMC believes ASARCO's plan, sponsored by
Sterlite, should be rejected on the basis that it offers creditors far
less value and is unreasonable for a number of reasons, including the
payment of asbestos claims and environmental claims for more than 100
percent of the allowed amount of those claims.

The Abernathy MacGregor Group
Tom Johnson or Winnie Lerner
212-371-5999

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