Asarco asks to extend stay of expense reimbursement for auction bids

By Alice Popovici

New York, Aug. 28 - Asarco, LLC filed a renewed motion for a stay pending appeal of the order approving the expense reimbursement in connection with the auction and proposed $6.48 billion sale of its Southern Peru Copper Corp. judgment, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

Under the stay granted by the court Aug. 13, the company cannot reimburse expenses incurred by qualified bidders in connection with the proposed sale through Aug. 31.

The stay, which was originally requested by Asarco parent Americas Mining Corp., took effect Aug. 11. As contemplated in the original motion, Americas Mining now asks the court to stay the reimbursement order pending the outcome of its 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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