Americas Mining Company, a Grupo Mexico Affiliate, Amends Reorganization Plan to Retain Equity Interest in ASARCO LLC¹

PHOENIX--(BUSINESS WIRE)--Americas Mining Corporation (“AMC”), an affiliate of Grupo Mexico SAB de CV (GMEXICO), announced today that it has submitted an amended, improved reorganization Plan to secure control of its subsidiary ASARCO in connection with ASARCO’s Chapter 11 proceeding. The AMC Plan offers more money to creditors, pays the creditors faster and provides the greatest certainty of confirmation by the bankruptcy court.

Under the terms of the amended Plan, AMC will contribute $1.55 billion to ASARCO, which, in addition to the cash ASARCO currently holds, totals approximately $2.9 billion in cash plus other considerations. This $2.9 billion is available for distribution to creditors on the effective date of the AMC bankruptcy Plan.

In contrast, the competing plan under consideration by the Court, offered by India-based Vedanta, offers only $1.1 billion in cash and a non-interest bearing so-called “copper note,” which Vedanta values at $200 million, backstopped only by a $100 million letter of credit. As previously announced, AMC has funded an escrow with $1.3 billion to backstop its plan. A third plan, offered by Harbinger Capital Partners, amounts to $500 million in cash with interests in litigation against Vedanta and AMC that may never be realized.

Plan		Plan Consideration Available on Effective Date		Cash Infusion		Collateral
AMC Plan		$2.9 Billion		$1.3 Billion		$1.3 Billion in Escrow
Vedanta Plan		$2.4 Billion		$1.1 Billion		$100 Million Letter of Credit
Harbinger Plan		$1.8 Billion		$500 Million		None

Under U.S. bankruptcy law, any reorganization plan must be deemed “feasible” in order to be approved by the Court. AMC believes the $1.3 billion escrow provides far more certainty than the $100 million letter of credit Vedanta has proposed to backstop its own plan, half of which was in place when Vedanta breached its prior agreement to buy ASARCO.

The new AMC Plan offers to pay ASARCO creditors up to 95% of their claims. The amended AMC Plan includes payment of $1.303 billion to AMC plus a $250 million secured note to pay asbestos claims. The total value of the new AMC Plan is $2.9 billion, of which $2.703 billion will be paid on the date the plan is confirmed, and $250 million one year later. The Vedanta plan, however, offers to pay only $2.4 billion on the date of Confirmation and then provide payments through an interest-free note over nine years that are dependent on the price of copper. This “copper note” is currently valued at $200 million. Furthermore, the AMC plan includes considerations of certain debts and tax credits between AMC and ASARCO. In total, the AMC plan offers an additional $420 million in cash to be distributed to creditors than the Vedanta plan.

¹ All dollar figures are in U.S. currency.