Asarco ordered to hold off judgment sale reimbursement through Aug. 31

By Caroline Salls

Pittsburgh, Aug. 13 - Asarco LLC cannot reimburse expenses incurred by qualified bidders in connection with the company's proposed $6.48 billion sale of its Southern Peru Copper Corp. judgment through Aug. 31 under a stay granted Thursday by the U.S. Bankruptcy Court for the Southern District of Texas.

The stay, which was originally requested by Asarco parent Americas Mining Corp., took effect on Tuesday.

Americas Mining asked the court to stay the reimbursement order pending the outcome of the parent company's appeal.

As previously reported, Asarco obtained court approval on July 30 to reimburse the due diligence expenses of bidders selected to move to a second phase of the stalking horse bidder selection process.

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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