A U.S. Bankruptcy judge delayed making a decision about a proposed reorganization plan for Tucson-based copper miner Asarco LLC until May 15.
The delay gives more time for Asarco’s estranged parent Grupo Mexico SAB to submit a competing reorganization plan for the company.
Grupo, which lost corporate control of Asarco when it filed for bankruptcy in Corpus Christi, Texas in 2005, has been trying to regain power of the firm.
Judge Richard Schmidt already has given Asarco approval to sign a deal with India-based Sterlite Industries Ltd. Under the deal, which is dependent on approval of Asarco’s proposed reorganization plan, Sterlite would buy Asarco’s assets for $1.1 billion in cash and $600 million in notes.
But earlier this month Grupo said it planned to submit a competing offer for Asarco worth $1.3 billion in cash.
If Grupo fails to file the reorganization plan by May 15, Schmidt would allow Asarco to continue with its plan.