Asarco to pay $9 million under Mission Mill sale lawsuit settlement

By Caroline Salls

Pittsburgh, Feb. 26 - Asarco LLC requested court approval of a lawsuit settlement with Mineral Park Inc. under which Asarco will pay Mineral Park $9 million, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

According to the motion, Asarco entered a purchase agreement in July 2005 to sell its Mission Mill to Mineral Park for $6 million.

However, in September 2006, Asarco filed an adversary seeking to avoid the sale, and the court ordered a preliminary injunction that prohibited the dismantling or moving of the sold assets.

Asarco said the key issue is whether it received fair value for the assets in 2005, which it said is "hotly contested."

In exchange for the $9 million settlement payment, Mineral Park will provide Asarco with a bill of sale, transferring the assets to Asarco.

In addition, the lawsuit will be dropped.

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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