International lawyer Eduardo Bryce told BNamericas that the future of Lima based Doe Run Perú is still not resolved but the outlook is not good.

Mr Bryce said that "The situation over there is pretty chaotic. Nobody wants to have anything to do with this company. It's a fact that some heads will roll.”

In November, Peru's public prosecutor filed charges against Ira Rennert. Doe Run Perú is an affiliate of the New York-based Renco Group which is controlled by Rennert.

The executive is accused of presenting a fraudulent debt of USD 139 million with the objective of controlling the board of creditors that is deciding the fate of Doe Run Perú, which owns the La Oroya smelter in Junín region. Rennert is also accused of giving false testimony in court.

Mr Bryce said that "The legal and financial trick that Rennert organized is very difficult to detect but they discovered it and this is what will be most problematic for the company if it wants to resume operations.”

The same charges were filed against Doe Run Perú's executive director Bruce Neil. Under Peruvian law, the penalty could be up to 10 years in prison.

Meanwhile, a decision on whether to restructure of liquidate the company will be made by a group of creditors in a process being supervised by competition regulator Indecopi.

(Sourced from BNamericas)