Doe Run strikes deal with creditors

ST. LOUIS -- Doe Run Co. said it has reached a deal with creditors that would pare its debt and avert its filing for Chapter 11 bankruptcy protection.

St. Louis-based Doe Run, whose lead smelter in Herculaneum about 30 miles south of here is the nation's largest, said Friday that the complicated debt-swap offer should be finalized in writing in a week. Under the deal, the bondholders would receive options to buy up to 40 percent of Doe Run's common stock.

To complete the debt restructuring, the company needed -- and received -- approval from holders of at least 95 percent of its three types of bonds. Had bondholders rejected the offer, Doe Run had said it would seek approval for a bankruptcy ruling.

The agreement requires Doe Run to use proceeds from any asset sales of at least $20 million to pay off debts.

In Herculaneum, Doe Run has undertaken a government-ordered cleanup of yards and homes after officials found dangerous levels of lead in the soil.