Grupo Mexico says ruling could help Asarco pay debt

MEXICO CITY, March 20 (Reuters) - Mexican miner Grupo Mexico said on Thursday a recent court order that forces its bankrupt U.S. subsidiary Asarco to hold off on selling its assets could help the smaller company to eventually pay off its debts.

Grupo Mexico says the company still turns enough profit to cover its debts without selling its assets. But while it opposes the asset sale plan, Grupo Mexico does not have control of its subsidiary's board.

Asarco, which owns three copper mines in Arizona, filed for bankruptcy protection in 2005 after it was sued for about $1 billion over environmental cleanup and asbestos claims.

Last week in Corpus Christi, Texas, a U.S. Bankruptcy Court said Asarco still had to reappear in court before it could receive approval for the asset sale.

"This ruling permits Grupo Mexico (GMEXICOB.MX: Quote, Profile, Research, Stock Buzz), through its affiliate Asarco Inc, to continue with its efforts to present a plan that either pays the creditors in full or reinstates current debts," Grupo Mexico said in a statement.

The company's principal bondholders, Harbinger Capital Partners and Citigroup Global Markets, both support Asarco's asset sale plans.

Asarco's revenues in 2007 totalled some $1.68 billion, with earnings before interest, taxes, depreciation and amortization (EBITDA) of more than $530 million and a net profit of over $330 million. (Reporting by Mica Rosenberg; Editing by Tomasz Janowski)