Asarco seeks plan sponsors willing to buy substantially all company assets

By Caroline Salls

Pittsburgh, Feb. 4 - Asarco LLC is soliciting bids for plan of reorganization sponsors interested in buying substantially all of the company's assets, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

According to the bid procedures motion, Asarco has agreed in principle with its creditors on the terms of a plan of reorganization that is based on a sale of substantially all of its assets.

The company said it has agreed with its creditors on a plan process that includes a competitive plan sponsor selection meeting to maximize value for creditors and stakeholders.

Asarco said the plan sponsor meeting will mark the culmination of a 10-month marketing process.

Under the proposed bid procedures, all bids for the company's assets will be due three weeks after court approval of the bid procedures.

The plan sponsor selection meeting would then be held about two weeks after the bid submission deadline.

Once a purchase agreement has been negotiated, all superior proposals must exceed that offer by at least $25 million, plus the amount of a break-up fee.

A hearing on the bid procedures is scheduled for March 10.

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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