Sunday, October 14, 2012

Citibank elect to sell Doe Run at least U.S. $ 425 million

The meeting of creditors of Doe Run agreed today choose to Citibank as the investment bank that is responsible for conducting the sale of the metal at a base price of U.S. $ 425 million, which was estimated by the bank, told Biznews . pe, Richard Almerco, counsel workers union.

In this regard, Almerco said that figure could rise even more considering that from November Doe Run will invest around U.S. $ 200 million with the aim of reviving the lead circuit of La Oroya, which will be held as evidence, to return to their positions and work to 600 new workers.

He noted that the board has 10 days to sign the respective contract with Citibank in exchange for which agree to pay U.S. $ 150,000, to be paid to the bank in three equal parts from the signing of the agreement.

And once that is achieved the sale, whose deadline is set for April 12, 2013, the bank may charge a fee of up to $ 4 million, scored Almerco.

In that sense be said that from February or March of 2013 when the investment bank will have clearly defined what the bidding firms, which may be either national or foreign. Do not rule out including some creditors may appear as Volcan or Buenaventura.

He is also Managing Director of Studio Almerco Lawyers said that in the unlikely event that Citibank decides not to sign the agreement, then the board would evaluate the conditions set by the bank UBS, which valued the company at just U.S. $ 125 million, much lower than estimated by Citibank for $ 425 million