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Asarco LLC is starting to see some light in its incestuous battle with its Mexican parent over control of the now-solvent copper miner upon emergence from bankruptcy.
Asarco attracted a $2.6 billion cash offer to sell its assets, but nonbankrupt parent Grupo Mexico SAB de CV is furiously scrambling to stall the deal's approval. The sale is scheduled for what's expected to be contentious hearings beginning Thursday before Judge Richard Schmidt in U.S. Bankruptcy Court for the Southern District of Texas in Corpus Christi. Sterlite (USA) Inc., an affiliate of London global mining company Vedanta Resources plc, bested Grupo Mexico and two other bidders in the private auction on May 23, and Asarco wants sale approval to move on with the Aug. 9, 2005, case. Grupo Mexico, which goes under Asarco Inc. in the Chapter 11 of its wholly owned subsidiary, was set to ask Schmidt late Monday to compel its bankrupt unit to produce documents to assure that it was treated fairly when its bid was rejected by its wayward offspring. At the same hearing, Tucson, Ariz.-based Asarco will ask Schmidt for a bridge order to extend its sole right to file a plan until Thursday since its exclusivity was set to expire on Tuesday. It's safe to say both sides are getting under the other's skin. Schmidt may have telegraphed his inclinations just months into the stormy 2005 bankruptcy, however, when he removed Grupo Mexico from control of its 100% stake in Asarco. Parent and child have been scratching and clawing at each other ever since. Asarco turned solvent once copper prices climbed from $1.60 an ounce at filing to around $3.60, and Grupo Mexico now finds itself to just be one of several parties who want to cash in on the twist of fate. - Terry Brennan Categories Deal Video
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