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

By Caroline Salls

Pittsburgh, April 11 - Asarco LLC obtained court approval of the bidding procedures and its choice of Glencore Ltd. as the stalking horse bidder for its proposed $40 million sale of its Tennessee mines division, according to a Tuesday 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.

The auction is scheduled for May 17. 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.

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