Document:

Ex-4.46 Sterlite Plan Agreement

Exhibit
4.46

Sterlite Plan Agreement in Principle Term Sheet

     This Term Sheet (as the same may be amended, modified or supplemented from time to time, the
“Term Sheet”) is made and entered into as of June 12, 2009 by and among ASARCO LLC, a Delaware
limited liability company (“ASARCO”), the subsidiary debtors (together with ASARCO, the “Debtors”),
Sterlite (USA), Inc., a Delaware corporation (the “Plan Sponsor”), Robert C. Pate, in his capacity
as the Future Claims Representative (the “FCR”), and the Official Committee of Asbestos Claimants
in order to set forth their agreement to the matters set forth below (the “Asbestos Committee” and
collectively with the FCR, the “Asbestos Representatives”). The Debtors, the Plan Sponsor, the FCR
and the Asbestos Committee hereinafter are referred to individually as a “Party” and collectively
as the “Parties”. Capitalized terms not defined herein shall have the meaning ascribed to such
terms in that certain Settlement and Purchase and Sale Agreement (the “New Plan Sponsor PSA”),
dated as of March 6, 2009.

Base Plan and Additional Improvements

Plan:

	 	•	 	In consideration of the terms and conditions contained herein, Asbestos
Representatives
agree to withdraw their support for the plan proposed by Grupo (the “Parent Plan”) and to
support the plan proposed by Plan Sponsor and the Debtors (including, without
limitation, the provisions therein relating to the section 524(g) injunction).

	 	Ø	 	 Except as provided herein, the New Sterlite Plan shall be in
substantially the form
of the Debtors’ Third Amended Joint Plan of Reorganization Under Chapter 11 of
the United States Bankruptcy Code, as such plan shall be amended to give effect
to: (i) all necessary material changes and developments in the chapter 11 cases
since such plan was filed, (ii) the terms outlined herein, and (iii) such other
terms
and conditions as the parties hereto may agree (the “New Sterlite Plan”).

Sterlite Note:

	 	•	 	Principal amount of the Purchaser Promissory Note shall be no less than $770 million
and
Agreed Working Capital shall be $328 million.

	 	Ø	 	 There shall be no downward adjustment of the principal amount of the
Purchaser Promissory Note (or to any other consideration to be paid by the Plan
Sponsor under the New Plan Sponsor PSA) if on the Closing Date the Closing Accounts
Amount is lower than the Agreed Working Capital.
	 
	 	Ø	 	 If on the Closing Date the Closing Accounts Amount is higher than
Agreed Working Capital the principal amount of the Purchaser Promissory Note shall
be adjusted as per the provisions of the New Plan Sponsor PSA.

1

 

	 	Ø	 	 All other terms of the Purchaser Promissory Note and the security for
the Purchaser Promissory Note shall remain unaltered except as required to give
effect to the modifications described herein.

Litigation Backstop:

	 	•	 	Upon the occurrence of the Effective Date (as defined in the New Sterlite Plan),
Plan Sponsor shall enter into a definitive agreement (the “Put Option”) pursuant to which
the Asbestos Trust shall be entitled to sell, and Plan Sponsor shall be obligated to
purchase the pro rata share of the interest in the Brownsville litigation which is
distributed for the benefit of holders of Asbestos Claims1 and is expected to be
approximately 27% (the “Asbestos Litigation Interest”).

	 	Ø	 	 Put Option is exercisable one time only.
	 
	 	Ø	 	 The Asbestos Trust may exercise the Put Option at any time after the
end of the second year from the Effective Date through the end of the fourth year
from the Effective Date, even if the Brownsville litigation has been reversed on
appeal or has been determined adversely to the Debtors or to the interests of the
Litigation Trust (the “Exercise Period”).
	 
	 	Ø	 	 Base purchase price for the pro rata share shall be $160 million less
the amount of any receipt or other recovery on account of the Asbestos Litigation
Interest that shall have been achieved prior to exercise of such right.
	 
	 	Ø	 	 Asbestos Representatives may sell a portion of their Asbestos
Litigation Interest on or prior to the Effective Date, in which case the adjusted
purchase price shall be ratably reduced in proportion to the percentage of the
Litigation Interest distributed to the Asbestos Trust (as defined in the New
Sterlite Plan) which shall have been sold.
	 
	 	Ø	 	 Put Option may be partially exercised and the pro rata share of
the adjusted purchase price shall be ratably adjusted.
	 
	 	Ø	 	 Any receipt or other recovery on account of the Asbestos Litigation
Interest that shall have been achieved prior to the date of the exercise of the Put
Option shall be retained by the Asbestos Trust or the holders of Asbestos Claims,
as applicable, and deducted from the $160 million purchase price payable upon
exercise of the Put Option.

 

			
	1	 	As used herein, “Asbestos Claims” shall mean all claims and demands of any person or entity,
present or future, holding asbestos claims and/or demands against ASARCO and/or the
Subsidiary Debtors of a direct or indirect nature.

2

 

	 	Ø	 	 Any receipt or other recovery on account of the Asbestos Litigation Interest
that shall be achieved after the exercise of the Put Option shall be retained by or
distributed to Plan Sponsor.
	 
	 	Ø	 	 Put Option will be secured by inventory and accounts receivable of Plan Sponsor.
	 
	 	Ø	 	 Plan Sponsor may assign the benefits of the Put Option but not the obligations.

Plan Support

	 	•	 	Asbestos Representatives agree to support the New Sterlite Plan and not to support
any
other plan. If more than one plan shall be presented to creditors for voting, and creditors
are entitled to vote on more than one such plan, Asbestos Representatives agree to advise
and recommend that all holders of Absestos Claims vote in favor of the New Sterlite Plan
and that they indicate a preference for the New Sterlite Plan on the ballot (the “Plan
Support Obligation”).
	 
	 	•	 	The Asbestos Representatives will take such other action as is reasonably necessary
to
accomplish the goal that the holders of Asbestos Claims vote to accept the New Sterlite
Plan in sufficient number to satisfy in all respects the requirements of 11 USC Sections
524(g), 1126, and 1129.
	 
	 	•	 	Asbestos Representatives’ Plan Support Obligation shall be subject to a fiduciary out
in the event they determine that an alternative plan proposal that is feasible,
confirmable, and has a likelihood of becoming effective within a reasonable period of time,
will yield materially greater recovery to the holders of Asbestos Claims, and provide
aggregate consideration to all creditors that is greater to that provided under the New
Sterlite Plan (the “Fiduciary Out”).
	 
	 	•	 	Upon the exercise of the Fiduciary Out, Asbestos Representatives shall: (i) continue to
recommend that holders of Asbestos Claims vote in favor of confirmation of the New Sterlite
Plan (and in favor of any provision contained therein which relates to the provision of a
channeling injunction pursuant to section 524(g) thereof), (ii) not recommend that holders
of Asbestos Claims indicate a preference for any plan, and (iii) not argue against the
confirmation of the New Sterlite Plan or argue in favor of the confirmation of any plan
other than the New Sterlite Plan, but the Asbestos Representatives may recommend that
holders of Asbestos Claims also vote in favor of the alternative plan giving rise to the
exercise of the Fiduciary Out provided no preference toward such a plan is indicated. The
Asbestos Representatives may inform the Court that they are neutral or have no preference
which plan may be confirmed by the Court, whether it is the New Sterlite Plan or some other
plan that gave rise to the exercise of the Fiduciary Out.
	 
	 	•	 	Except as otherwise provided herein, it is the intent of the Parties that the
provisions of this Term Sheet or the agreement embodied herein in no way, manner or form
shall

3

 

	 		 	restrict or impair the free and independent exercise of the Asbestos Representatives’
fiduciary duties.

Other Interim Steps

	 	•	 	Asbestos Representatives shall promptly provide Grupo notice of the exercise of their
fiduciary out under the terms of the Agreement in Principle between Grupo and the Asbestos
Representatives.
	 
	 	•	 	All parties hereto shall take all other actions and positions as are reasonably
necessary to comply with the terms and intentions of this Term Sheet, including, without
limitation, supporting the Debtors’ defense of the appeal against the Sterlite Agreed
Order.
	 
	 	•	 	Debtors and the Asbestos Representatives shall request the adjournment of the hearing
on estimation of asbestos claims (and all related dates and deadlines) pending
confirmation. If the holders of Asbestos Claims fail to vote in favor of the New Sterlite
Plan in the requisite numbers to satisfy the requirements of 11 USC Sections 524(g), 1126
or 1129, the Debtors may request that the court hear ASARCO’s motion to estimate the
asbestos claims and the Debtors shall not be bound by the proposed allowance of such claims
as provided in the New Sterlite Plan.

Treatment of Asbestos Claim

	 	•	 	The Asbestos Representatives have asserted claims of approximately $2.1 billion (the
“Asserted Claims”). In order to settle and compromise disputes between the Debtors and the
Asbestos Representatives as to the allowed amount of Asbestos Claims and to facilitate the
agreements contained herein, the Asbestos Representatives have agreed to reduce the
Asserted Claims to a $1 billion allowed claim and to receive pro rata distributions of (i)
cash, (ii) the Purchaser Promissory Note (or interest in a trust holding such Purchaser
Promissory Note), and (iii) litigation trust interests under the New Sterlite Plan based
upon a claim amount of $750 million.
	 
	 	•	 	The Asbestos Claims shall be channeled to the Asbestos Trust, and the holders of
such Asbestos Claims shall look solely to the Asbestos Trust for payment on such
Asbestos Claims.
	 
	 	•	 	The Asbestos Trust shall be established and funded on the Effective Date with:

	 	Ø	 	 a pro rata share of all cash distributed to unsecured creditors based
upon a $750 million claim amount
	 
	 	Ø	 	 a pro rata share of the Purchaser Promissory Note based upon a claim
amount of $750 million
	 
	 	Ø	 	 a pro rata share of litigation trust interests based upon a claim
amount of $750 million

4

 

	 	Ø	 	 rights to all insurance proceeds from all policies with respect to Asbestos Claims
	 
	 	Ø	 	 $27.5 million to fund the costs of administering the Asbestos Trust,
which shall be an allowed administrative claim

	 	•	 	Asbestos Representatives shall be permitted to select one of three litigation
trustees for the litigation trust; provided, however, the Parties recognize that the
number of litigation trustees may be expanded if necessary to accommodate the auction of
all or a portion of the interest in the Brownsville litigation.
	 
	 	•	 	Cooperation agreement with respect to access to information to be provided.
	 
	 	•	 	Asbestos trust related documents (asbestos TDP, asbestos trust agreement, etc.) shall
be reasonably acceptable to the Asbestos Committee, the FCR and the Debtors.
	 
	 	•	 	Debtors to be permitted to substantively consolidate estates at their election.
	 
	 	•	 	Intercompany DIP loan extended through the Effective Date.
	 
	 	•	 	The outstanding balance, if any, under the intercompany DIP loan shall be credited
against the Debtors’ initial cash funding of the Asbestos Trust as provided in the
Debtors’ Third Amended Plan of Reorganization.
	 
	 	•	 	Debtors shall be liable for the post-confirmation date fees and expenses of the
Asbestos Representatives to the same extent they are liable for the fees and expenses of
other retained professionals.

REMAINDER OF PAGE LEFT INTENTIONALLY BLANK

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DEBTORS:

ASARCO LLC, a Delaware limited liability company

By: /s/ Joseph F. Ladinsky                    
       Name: JOSEPH F. LADINSKY
       Title: PRESIDENT

Cement Asbestos Products Company

Capco Pipe Company
Lac D’Amiante du Quebec, Ltee.
LAQ Canada, Ltd.
Lake Asbestos of Quebec, Ltd.

By: /s/ Robert C. Pate          

Robert C. Pate, Future Claims Representative in his official capacity as representative
of the Asbestos Subsidiary Debtors’ future creditor-claimants pursuant to the Stipulation and
Agreement Regarding the Prosecution of Alter Ego Claims on Behalf of the Asbestos Subsidiary
Debtors’ Estates approved by the Court on April 25, 2006

By: /s/ Alan R. Brayton     

The Official Committee of Unsecured Creditors of the Subsidiary Debtors, in its capacity
as representative of the estates of the Asbestos Subsidiary Debtors and of their creditors and
claimants pursuant to the Stipulation and Agreement Regarding the Prosecution of Alter Ego
Claims on Behalf of the Asbestos Subsidiary Debtors’ Estates approved by the Court on April
25, 2006

     Name: Alan R. Brayton

     Title: Co-Chair

PLAN SPONSOR:

STERLITE (USA), INC., a Delaware corporation

By: /s/ C.V. Krishnan              
       Name: C.V. Krishnan
       Title: President

 

ASBESTOS COMMITTEES:

The
Official Committee of Unsecured Creditors of the Subsidiary Debtors

          By: /s/ Alan R. Brayton          
     Name: ALAN R. BRAYTON
     Title:   CO-CHAIR

The Official Committee of Asbestos Claimants

          By: /s/ Alan R. Brayton          
     Name: ALAN R. BRAYTON
     Title:   CO-CHAIR

FCR:

The Future Claims Representative for the Subsidiary Debtors

/s/ Robert C. Pate    
Robert C. Pate

The Future Claims Representative for the Debtor

/s/ Robert C. Pate    
Robert C. Pate

The Future Claims Representative for the Additional Debtors

/s/ Robert C. Pate    
Robert C. PateEX-4.47 Credit Agreement Letter dated Feb 7, 2005

Exhibit 4.47

CREDIT ARRANGEMENT LETTER

CSG(W)10535

February 07, 2005

India Foils Limited

1, Sagore Dutta Ghat Road,

Kamarhati,

Kolkata 700 058

Dear Sirs,

We have pleasure in advising you that the Bank has sanctioned the following term loan facility to
the company.

	 	 	 	 	 
	 	 	(Rs. in million)
	 
	Facilities
	 	 	Limit	 
	Term Loan
	 	 	1020.0	 
	TOTAL
	 	 	1020.0	 

The aforesaid credit facilities are subject to the main terms and conditions (subject to change as
per RBI directives/Bank’s policies from time to time) set out in Annexure I hereto which is deemed
to be a part of this Credit Arrangement Letter. The credit assistance is also subject to the
conditions that are contained in the documents, which the Company has to execute between and in
favour of ICICI Bank Limited.

Meanwhile please return to us the duplicate copy of this letter duly signed by the Authorized
signatory of the Company in token of acceptance of the terms and conditions stipulated herein.

Yours faithfully,

/s/ Suvalaxmi Chakraborty

Suvalaxmi Chakraborty

General Manager

Enclosures

	 	 	 
	 

	 	Accepted
	 	 	 
	 
	 	For India Foils Limited
	 	 	 
	 	 	 
	 
	 	Authorized Signatory

	 	 	 	 	 
	ICICI Bank Limited
	 	 	 	 
	ICICI Bank Towers

	 	Tel. (+91-22) 2653 1414
	 	Regd. Off. : Landmark, Race Course Circle, Vadodara 390007, India.
	Bandra-Kurla Complex

	 	Fax (+91-22) 2653 1122
	 	Corp. Off. : ICICI Bank Towers, Bandra-Kurla Complex
	Mumbai
400 051, India

	 	Website www.icicibank.com
	 	Mumbai 400051, India, Tel. (+91-22)
2653 1414 Fax (+91-22) 2653 1122

 

2

TERMS AND CONDITIONS

The
following summary of Terms and Conditions (the “Term Sheet”) provides indicative terms and
conditions for the credit facilities to the Borrower. This Term Sheet is not meant to be, nor
should it be construed as a commitment by ICICI Bank to extend credit facilities. The Term Sheet is
intended to outline basic points of business understanding around which the credit facilities would be
constructed. It does not attempt to describe all the terms and conditions that would relate to the
credit facilities nor do the terms suggest specific documentation phrasing. The closing of any
financial transaction relating to the credit facilities would be subject to various conditions
precedent, including without limitation, the conditions set forth in this Term Sheet. The final
terms and conditions applicable to the credit facilities would be subject to inter alia, due
diligence of various agreements and contracts, validation of revenue assumptions, legal counsel
review, satisfactory transaction economics and internal credit.

	 	 	 
	Facility
	 	Term Loans
	 
	 	 
	Limit
	 	Rs. 1020.0 million
	 
	 	 
	Currency

	 	Rupee facility
	 
	 	 
	Security

	 	Secured by a first charge over the fixed assets of India Foils Limited.
	 
	 	 
	Tenor /

Repayment

schedule

	 	Amortisation schedule of the loan is attached.
	 
	 	 
	Interest

	 	The Company shall pay to ICICI Bank interest on the principal amount of the Facility outstanding from time to time
monthly in each year on
15th day of each calender month. The rates of interest for each Tranche of the Facility
(“the Applicable Rate”) shall be as follows:
	 
	 	 
	 

	 	From February 2005 till January 2006: Nil interest
	 
	 	 
	 

	 	From February 2006 till November 2007: 7.00% per annum below the sum of the ICICI Bank Benchmark Advance Rate and the
Term Premium prevailing on the date of disbursement of such Tranche of the Facility, plus applicable interest tax or
other statutory levy, if any.
	 
	 	 
	 

	 	The ICICI Bank Benchmark Advance Rate as on date is 10.50% per annum, the Term Premium as on date is 1.00% per annum
and the Applicable Rate as on date is 4.50% per annum.
	 
	 	 
	 

	 	From December 2007 till November 2009: 1.50% per annum below the sum of the ICICI Bank Benchmark Advance Rate and the
Term Premium prevailing on the date of disbursement of such Tranche of the Facility, plus applicable interest tax or
other statutory levy, if any.
	 
	 	 
	 

	 	The ICICI Bank Benchmark Advance Rate as on date is 10.50% per annum, the Term Premium as on date is 1.00% per annum
and the Applicable Rate as on date is 10.00% per annum.
	 
	 	 
	 

	 	From December 2009 till September 2011: 1.00% per annum below the sum of the ICICI Bank Benchmark Advance Rate and
the Term Premium prevailing on the date of
disbursement of such Tranche of the Facility, plus applicable interest tax or
other statutory levy, if any.

 

3

	 	 	 
	 

	 	The ICICI Bank Benchmark Advance Rate as on date is 10.50% per annum, the Term
Premium as on date is 1.00% per annum and the Applicable Rate as on date is
10.50% per annum.
	 
	 	 
	 

	 	Rate of interest is subject to revision from time to time.
	 
	 	 
	Redemption

Premium

	 	Rs. 30.0 million payable on September 15, 2011.
	 
	 	 
	Interest 

payment 

frequency

	 	Interest would be payable monthly, on the 15th day of each
month commencing from December 2007.
	 
	 	 
	Interest 

calculation

	 	Interest will be calculated on 365 day basis in respect of rupee loans.
	 
	 	 
	Prepayment

	 	The Company may pay any of the outstanding tranches (in part or full), on November 15th of each
year during the currency of the loan, without any prepayment premium or any other fee or charges except
interest accrued to date.

In addition to the above terms and conditions, the General Conditions (GC-C-1999) will also apply
to the Facility

 

4

AMORTIZATION SCHEDULE

	 	 	 
	COMPANY NAME

	 	INDIA FOILS LTD
	 
	 	 
	ASSISTANCE TYPE

	 	CORPORATE LOAN
	 
	 	 
	DUE DATES FOR INTEREST

	 	15TH OF EACH MONTH COMMENCING FROM FEBRUARY 15, 2005.

	 	 	 	 	 	 	 	 	 
	 	 	Installment of principal	 	Principal amount of the
	 	 	amount of the facility	 	facility outstanding after each
	Due Dates for Payment	 	(in Rs)	 	payment (in Rs)
	February 15, 2005

	 	 	—	 	 	 	1,020,000,000	 
	December 15, 2007

	 	 	61,875,000	 	 	 	958,125,000	 
	January 15, 2008

	 	 	—	 	 	 	958,125,000	 
	February 15, 2008

	 	 	—	 	 	 	958,125,000	 
	March 15, 2008

	 	 	61,875,000	 	 	 	896,250,000	 
	April 15, 2008

	 	 	—	 	 	 	896,250,000	 
	May 15, 2008

	 	 	—	 	 	 	896,250,000	 
	June 15, 2008

	 	 	61,875,000	 	 	 	834,375,000	 
	July 15, 2008

	 	 	—	 	 	 	834,375,000	 
	August 15, 2008

	 	 	—	 	 	 	834,375,000	 
	September 15, 2008

	 	 	61,875,000	 	 	 	772,500,000	 
	October 15, 2008

	 	 	—	 	 	 	772,500,000	 
	November 15, 2008

	 	 	—	 	 	 	772,500,000	 
	December 15, 2008

	 	 	61,875,000	 	 	 	710,625,000	 
	January 15, 2009

	 	 	—	 	 	 	710,625,000	 
	February 15,
2009

	 	 	—	 	 	 	710,625,000	 
	March 15, 2009

	 	 	61,875,000	 	 	 	648,750,000	 
	April 15, 2009

	 	 	—	 	 	 	648,750,000	 
	May 15, 2009

	 	 	—	 	 	 	648,750,000	 
	June 15, 2009

	 	 	61,875,000	 	 	 	586,875,000	 
	July 15, 2009

	 	 	—	 	 	 	586,875,000	 
	August 15, 2009

	 	 	—	 	 	 	586,875,000	 
	September 15, 2009

	 	 	61,875,000	 	 	 	525,000,000	 
	October 15, 2009

	 	 	—	 	 	 	525,000,000	 
	November 15, 2009

	 	 	—	 	 	 	525,000,000	 
	December 15, 2009

	 	 	61,875,000	 	 	 	463,125,000	 
	January 15, 2010

	 	 	—	 	 	 	463,125,000	 
	February 15, 2010

	 	 	—	 	 	 	463,125,000	 
	March 15, 2010

	 	 	61,875,000	 	 	 	401,250,000	 
	April 15, 2010

	 	 	—	 	 	 	401,250,000	 
	May 15, 2010

	 	 	—	 	 	 	401,250,000	 
	June 15, 2010

	 	 	61,875,000	 	 	 	339,375,000	 

 

5

	 	 	 	 	 	 	 	 	 
	 	 	Installment of principal	 	Principal amount of the
	 	 	amount of the facility	 	facility outstanding after each
	Due Dates for Payment	 	(in Rs)	 	payment (in Rs)
	July 15, 2010

	 	 	—	 	 	 	339,375,000	 
	August 15, 2010

	 	 	—	 	 	 	339,375,000	 
	September 15, 2010

	 	 	61,875,000	 	 	 	277,500,000	 
	October 15, 2010

	 	 	—	 	 	 	277,500,000	 
	November 15, 2010

	 	 	—	 	 	 	277,500,000	 
	December 15, 2010

	 	 	61,875,000	 	 	 	215,625,000	 
	January 15, 2011

	 	 	—	 	 	 	215,625,000	 
	February 15, 2011

	 	 	—	 	 	 	215,625,000	 
	March 15, 2011

	 	 	61,875,000	 	 	 	153,750,000	 
	April 15, 2011

	 	 	—	 	 	 	153,750,000	 
	May 15, 2011

	 	 	—	 	 	 	153,750,000	 
	June 15, 2011

	 	 	61,875,000	 	 	 	91,875,000	 
	July 15, 2011

	 	 	—	 	 	 	91,875,000	 
	August 15, 2011

	 	 	—	 	 	 	91,875,000	 
	September 15, 2011

	 	 	61,875,000	 	 	 	30,000,000	 
	September 15, 2011

	 	 	30,000,000	 	 	—

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