Asarco says it needs more financing
Asarco LLC is seeking approval to enter into a $5 million financing deal under its Chapter 11 restructuring.
The copper-mining company said it needed the financing because its $75 million bankruptcy loan expired in December, according to court documents filed Monday in the U.S. Bankruptcy Court in Corpus Christi, Texas.
“The credit facility is fair and reasonable and is the best option to obtain letters of credit available in the circumstances in this case,” the company said.
Tucson, Ariz.-based Asarco had previously won bankruptcy court approval of a $75 million loan from the CIT Group/Business Credit in December 2005. But the loan expired after two years, and Asarco said CIT Group had chosen not to renew the loan “in light of the debtor’s cash reserves.”
•National City Corp., a Midwestern bank heavily exposed to the worsening mortgage and housing market, confirmed Tuesday that it is reviewing its options amid rumors that it wants to find a buyer.
New York investment bank Goldman Sachs has been hired to look into strategic alternatives, the Cleveland-based bank said.
National City has not confirmed that it is seeking a buyer and did not elaborate on what alternatives are being considered.
“The review has no impact on National City’s day-to-day operations,” National City’s Chairman and chief executive Peter Raskind said in a statement.
On Jan. 2, National City cut its dividend 49 percent and said it was shutting down its wholesale mortgage division, eliminating 900 jobs. It has slashed about 3,400 jobs in recent months as it refocuses on borrowers with solid credit histories.
National City operates about 1,400 bank branches.
•Airbus’ parent company vowed to defend top executives against charges of insider trading and violating market disclosure rules as French regulators readied charges and broadened their investigation.
Regulators are trying to determine whether EADS executives and its main corporate shareholders – Lagardere Groupe and Daimler AG – sold shares when they found out that Airbus’ massive jetliner, the A380, was running into construction delays.
Market watchdog Autorite des Marches Financiers said Tuesday it will inform the Paris prosecutors office “immediately” of its findings.
AMF said letters outlining market abuse proceedings will be sent in coming days to those allegedly involved, a day after its board met to discuss findings of a lengthy probe.