Asarco sets bid procedures for $19.8 million Perth Amboy property sale

By Caroline Salls

Pittsburgh, Dec. 12 - Asarco LLC requested court approval of the bid procedures for the proposed $19.8 million sale of its Perth Amboy, N.J., property, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

Emerald Bay Equity, LLC is the stalking horse bidder.

In addition to the cash purchase price, Emerald Bay has agreed to assume Asarco's roughly $9 million in environmental liabilities related to the property.

Emerald Bay has paid a $495,000 deposit toward the purchase price. Competing bids must include a $750,000 deposit.

Initial overbids must be for at least $1 million more than the stalking horse bid, and subsequent bids at auction must be for at least $250,000 more than the previous bid.

If Emerald Bay is not the high bidder, Asarco will pay it a $750,000 break-up fee.

Asarco, a Tucson, Ariz., mining company, filed for bankruptcy on Aug. 9, 2005. Its Chapter 11 case number is 05-21207.

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