Asarco bid procedures for Perth Amboy property sale approved

By Jennifer Lanning Drey

Portland, Ore., Nov. 4 - Asarco LLC obtained court approval of the bidding procedures for the proposed sale of its Perth Amboy, N.J., property, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, RLF Perth Amboy Properties, LLC and TRC Cos., Inc. are the stalking horse bidders. They have agreed to pay the greater of $10 million or the amount of a remediation reimbursement, which will be the cost of TRC assuming the liabilities and obligations related to the property.

If RLF and TRC are not the high bidders, Asarco will pay them a $500,000 break-up fee.

The proposed buyers have paid a $250,000 deposit toward the purchase price.

All competing bids must include a $500,000 deposit and must be for at least $750,000 more than the stalking horse bid.

Subsequent bids at auction must be for at least $100,000 more than the previous bid.

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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