LIMA, Peru, April 7, 2011 /PRNewswire/ -- Doe Run Peru announced today the following:
CORMIN, the company that initiated DRP's bankruptcy proceeding before INDECOPI, has resorted to the Judiciary, seeking to avoid the legal rules expertise and competence that is exclusive to INDECOPI. In its efforts to attempt to accomplish this, CORMIN has improperly obtained an injunction without respecting and exhausting all proceedings of the bankruptcy process, ignoring confirmed debts that INDECOPI had defined, and possibly violating the right to due process for the rest of Doe Run Peru's creditors.
The bankruptcy legislation provides that precautionary measures that suspend rights in a bankruptcy proceeding, can only be issued in the context of contentious proceedings initiated against acts of INDECOPI. It is very surprising to learn of the decision of the Twelfth Commercial Court's Judge, Bacilio Luciano Cueva Chauca, for admitting the precautionary measure that openly infringes a specific provision of the General Bankruptcy Law which trespasses INDECOPI's jurisdiction.
Likewise, it is very unusual in these circumstances, that said Judge has accepted A MERE PROMISE AS A GUARANTEE for compensation for damages an injunction could generate, in regards to the monetary rights of almost US$140 million, WITHOUT REQUIRING A PROPORTIONATE GUARANTEE FOR SAID AMOUNT.
CORMIN'S conduct reveals reckless disregard of the rights of all other stakeholders. In other words, CORMIN, with the endorsement of Judge Cueva Chauca, seeks to control the Creditors Meeting and destroy the patrimony of the company, by promoting its liquidation instead of supporting a plan that promotes the restructuring of same and the prompt re-start of operations of the La Oroya Metallurgical Complex. With these actions, CORMIN is injuring the rest of the creditors, and especially the company's workers and the people of La Oroya. Along with this unusual action, CORMIN has promoted the publication in the media, of information referred to our company that is manifestly false and defamatory.
Faced with this array of circumstances, Doe Run Peru is forced to firmly reject the excessive abuse of the right of judicial protection. In this regard, Doe Run Peru emphatically reaffirms the following:
- The company has complied with all obligations of the stock transfer agreement executed with Centromin (today Activos Mineros) of October, 1997, having paid the price of the stock, made the contribution of the capital and fulfilled the investment commitment, a transparent transaction that was fully approved by the Peruvian Government. In this regard, US$247 million was paid to acquire the company of which US$121 million was paid directly to the Government, in strict compliance with said contract and verified by the competent authority, contrary to the egregious claims made by CORMIN that only US$2 million was invested. Additionally, Doe Run Peru has reinvested 100% of its profits since 2005 to date, investing more than US$310 million specifically in environmental projects, without considering other investments in modernization and operational improvements.
- Doe Run Peru owes Doe Run Cayman Ltd. Said debt is duly recorded and audited in our accounting books. After a thorough legal and accounting analysis that took several months, INDECOPI confirmed the debt and gave Doe Run Cayman Ltd. the right to vote in the Creditors Meeting. It is worth mentioning that said debt was known by the creditors including CORMIN and the government, to the point that its capitalization was part of the negotiations for the PAMA extension
- Doe Run Peru has put together a re-structuring plan that includes financing for a working capital facility that will allow the resumption of operations at the La Oroya Metallurgical Complex and the payment of all its debts in the short run. CORMIN's maneuvers put the execution of said plan at risk.
Doe Run Peru ratifies its firm decision to continue committing all efforts and necessary resources to re-start operations at the Metallurgical Complex, pay the debt and reach for the global solution of the problems it faces. For that reason, we need to unite all efforts to reach for a viable solution in the long term to benefit the workers, the people of La Oroya, and all other affected parties.
Given the above facts, Doe Run Peru urges the competent authorities to pursue all legal measures provided to defend its jurisdiction and sanction the responsible parties pursuant to law.
SOURCE Doe Run Peru