Copper company Asarco granted bankruptcy extension

PHOENIX, Feb 8 (Reuters) - U.S. copper company Asarco LLC on Friday was given another two months to file its plan to emerge from Chapter 11 bankruptcy by a federal judge.

Judge Richard Schmidt granted the company its ninth extension to file the plan at a hearing in U.S. Bankruptcy Court in the Southern District of Texas. The Tucson, Arizona-based company now has until April 11.

"It buys us time as we continue to prepare the plan," said Doug McAllister, Asarco's executive vice president and general counsel. "It was pretty clear we needed more time."

Asarco, owned by Grupo Mexico SA de CV (GMEXICOB.MX: Quote, Profile, Research, Stock Buzz) of Mexico City, asked the court this week for permission to set up a bidding process to sell its assets. Asarco officials revealed that there were six potential suitors, but did not name them.

A Grupo Mexico spokesman said the company was against the sale.

Asarco filed for bankruptcy protection in 2005 under the weight of massive environmental cleanups and asbestos claims. The company said it had secured agreements to settle these claims totaling $1 billion.

A March 10 hearing has been set relating to the sale of Asarco's assets. (Reporting by David Schwartz; Editing by Mary Milliken and Braden Reddall)