Asarco requests court approval of bidding procedures for $40 million sale of Tennessee mines division

By Caroline Salls

Pittsburgh, April 6 - Asarco LLC requested court approval to sell its Tennessee mines division to stalking horse bidder Glencore Ltd. for $40 million, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

Glencore has paid an $800,000 deposit.

Competing bids must be for at least $41.5 million, plus the $800,000 deposit.

Subsequent bids must be made in increments of $100,000.

If Glencore is not the high bidder, Asarco will pay it a $1.2 million break-up fee.

A hearing on approval of the bidding procedures is scheduled for Tuesday. The sale hearing will be held May 19.

Asarco, a Tucson, Ariz., mining company, filed for bankruptcy on Aug. 9, 2005. Its Chapter 11 case number is 05-21207.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.