2008-10-10 22:26:00 -

- In an October 7, 2008 hearing before the United States District Court for the Southern District of Texas, Brownsville Division, Americas Mining Corporation (AMC), a subsidiary of Grupo Mexico, S.A.B. de C.V., presented oral arguments stating that, based on the evidence presented at trial, AMC did not cause any damage to ASARCO LLC's (ASARCO) creditors when it acquired 54.2

percent of Southern Copper Corporation (SCC) from ASARCO in 2003. ASARCO continues to insist on return of the SCC stock as a remedy arising out of this transaction because the Court had earlier determined that AMC hindered and delayed certain ASARCO creditors. AMC argued, however, that ASARCO cannot meet its burden of proof as to any damages caused to ASARCO or its creditors because AMC has proposed a bankruptcy plan that would pay all creditors in full such that ASARCO and its creditors have no standing to pursue any remedies. AMC furthered argued that because reasonably equivalent value was paid, there could be no economic damage. If the court agrees, there would be no material adverse economic impact on AMC or Grupo Mexico.

AMC also argued that under the Court's equitable powers, it should not allow the environmental and asbestos claimants to recover anything more than the actual value of their allowed claims in bankruptcy. Under the competing bankruptcy plan supported by ASARCO, these creditors would obtain a tremendous windfall should the court order return of the SCC stock or the value of the stock. For these reasons, AMC asked the Court to take these factors into consideration in its determination of remedies for its final judgment.

Throughout the Chapter 11 proceedings, ASARCO and these two classes of creditors have systematically refused through an estimation procedure in the bankruptcy court to determine the amount of the liabilities and furthermore have denied AMC the opportunity to have an effective voice in repeated efforts to settle these claims. To the contrary, it appears that ASARCO has promoted a plan with the motivation to strip AMC of its equity interest in ASARCO.

AMC also expressed that it will pursue all legal remedies to prevent any such windfall.

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