GMexico Vows to Save Asarco

Grupo Mexico issued a statement Wednesday rejecting a proposal for auction of the assets of its mining unit Asarco by its independent board, filed in a bankruptcy court in the US. “GMexico believes that Asarco has proven its capacity to generate enough cashflow to completely pay all of its creditors and maintain considerable value for its stockholders,” the company says. Asarco had approximate net sales of $1.68bn, $550m Ebitda and a net profit of over $330m in 2007, numbers that according to GMexico “reflect the solvency and liquidity of Asarco to pay its debts once they are determined and defined.” GMexico says it is doing everything possible to regain control of the board and bring Asarco out of bankruptcy proceedings.