Asarco hearing on property sale bid procedures continues to Jan. 31

By Rebecca Melvin

New York, Jan. 8 - A hearing on approval of bid procedures for Asarco LLC's Perth Amboy property sale has been continued to Jan. 31, according to an attorney.

The hearing was originally scheduled for Jan. 7 at the U.S. Bankruptcy Court for the Southern District of Texas.

Asarco sought approval of bid procedures for the $19.8 million sale of its Perth Amboy, N.J., property.

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.

Perth Amboy is a 68-acre smelting facility that Asarco leases to various tenants.

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.-based mining company, filed for bankruptcy protection in August 2005 to resolve environmental and asbestos claims resulting from Asarco's operations. Its Chapter 11 case number is 05-21207.

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