Grupo Mexico said it will study a U.S. federal judge's ruling ordering its subsidiary Americas Mining Corporation return 260,093,694 shares of Southern Copper Corporation stock, worth $4.68 billion and pay $1.35 billion in monetary damages to Asarco.
U.S. District Judge Andrew Hanen of Brownsville, Texas, awarded money damages based on dividends of $1.94 billion that AMC received from the Asarco stock. Hanen subtracted the $747 million that AMC paid for Southern Copper Corporation in the original transaction.
Asarco will now own a 30% equity interest in Southern Copper Corporation of a stake which originally was 54% in 2003, but has since been diluted by stock splits and buybacks.
Previously, Hanen had ruled that AMC was liable for the actual fraudulent transfer of Southern Copper away from Asarco, which eventually filed for bankruptcy.In a news statement, Joseph F. Lapinsky, president and CEO of Asarco, said, Justice has ultimately prevailed. This award is for the benefit of Asarco's creditors in the bankruptcy and should assist the company in its efforts to successfully emerge from Chapter 11 in the coming months.
Asarco originally filed for Chapter 11 bankruptcy in 2005. The company has 2,500 employees, operates three mines, mills, SX-EW plants and a smelter in Arizona and a refinery complex in Texas.
Asarco is now trying to sell its assets to Vedanta subsidiary Sterlite Industries for $1.7 billion, but the sale must be approved by the bankruptcy court.
The Corpus Christi, Texas, bankruptcy court is also being asked to approve a proposed $1.1 billion settlement of Asarco-related environmental claims from federal and state agencies.