Asarco granted $82.75 million net judgment in Sterlite breach lawsuit

By Caroline Salls

Pittsburgh, Feb. 15 - Asarco LLC has been granted a net payment of $82.75 million in incidental damages in connection with a breach of contract claim, according to a Sterlite Industries (India) Ltd. news release.

As previously reported, Asarco filed a lawsuit against Sterlite Industries (India) and wholly owned subsidiary Sterlite (USA), Inc. in March 2010, alleging that the Sterlite entities breached their agreement to buy substantially all of Asarco's assets by refusing to pay the $2.6 billion purchase price.

Asarco also claimed that the Sterlite entities refused to assume the liabilities and contractual obligations required by the May 30, 2008 purchase agreement.

Sterlite said in the release that it asked the U.S. Bankruptcy Court for the Southern District of Texas for a refund of $50 million. The court rejected that request.

According to the order filed Monday, Asarco was granted a gross judgment of $132.75 million, which includes $102.75 million in interest damages and $30 million in additional professional fees.

The court subtracted a $50 million letter of credit to reach the $82.75 million net judgment amount.

Sterlite said it is examining the order and will take appropriate action based on legal advice, according to the release.

Asarco, a Tucson, Ariz., mining company, emerged from bankruptcy in December 2009.

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