Wilmington, Delaware: Mining company Grupo Mexico SAB won the right to regain control of its bankrupt US copper miner when a judge in Texas approved its plan to reorganize Asarco Llc and rejected a competing offer from Sterlite Industries (India) Ltd.
US district judge Andrew Hanen in Brownsville, Texas, ruled that Grupo Mexico’s proposal to pay around $2.5 billion (Rs11,625 crore) to Asarco’s creditors is both “feasible and confirmable”. The decision means that barring a successful appeal by Sterlite, Grupo Mexico should be able to regain control of the Tucson, Arizona-based copper miner.
Grupo Mexico and Sterlite each promised to spend at least $2.5 billion to guarantee that Asarco’s creditors are repaid in full. In ruling in favour of Grupo Mexico, Hanen agreed with the opinion of a lower court that oversaw the case for five years.
“In many ways, the course of this bankruptcy has been a contentious and hard fought piece of litigation,” Hanen wrote in his decision, which came late on Friday.