Asarco gets court OK of bidding procedures for property sale

By Caroline Salls

Pittsburgh, Jan. 9 - Asarco LLC obtained court approval of the bidding procedures for the proposed sale of its Tacoma, Wash., property to stalking horse bidder MC Construction Consultants, Inc., according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

The property is comprised of 97 acres in Tacoma and Ruston, Wash.

According to the motion, the proposed buyer has agreed to pay $6.22 million in cash and enter an agreement to pay $15,000 per unit developed on the property, with a minimum of $1.5 million per year for the five years after closing, for a required minimum five-year total of $7.5 million.

If MC Construction is not the high bidder, Asarco will pay it a $250,000 break-up fee and up to $50,000 for expenses.

Each bid must include a $500,000 deposit.

Each bid other than MC Construction's must be for at least $500,000 more than the purchase price. Bids at auction must be for at least $100,000 more than the previous bid.

The auction will be held on Jan. 25. The sale hearing is scheduled for Jan. 30.

Asarco, a Tucson, Ariz., mining company, filed for bankruptcy Aug. 9. Its Chapter 11 case number is 05-21207.

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