DENVER (AP) — A bankruptcy judge late Monday recommended Grupo Mexico be allowed to regain control over copper miner Asarco LLC, saying its $2.2 billion bid is more likely to fully repay creditors than that of rival suitor Sterlite Industries.

U.S. Bankruptcy Judge Richard Schmidt in Corpus Christi, Texas issued the finding over objections from Asarco, its employees and some creditors who believed Sterlite's $2.1 billion bid was the best way for the Tucson, Ariz.-based company to emerge from four-year bankruptcy proceedings.

In a 133-page decision, Schmidt said both plans could be confirmed as both Grupo Mexico and India-based Sterlite pledged to pay creditors and continue Asarco operations. However, he said he considered the feasibility of each plan and how creditors would be treated under each plan.

"This court believes the parent's plan of reorganization is superior," Schmidt wrote. "The parent's plan is more likely to pay creditors in full in that it is funded with sufficient cash."

Schmidt noted Grupo Mexico's plan called for putting about 83.7 million shares of Southern Copper stock, worth about $2.4 billion, into an escrow account as a way to show its intention to fully fund the deal.

Federal District Court Judge Andrew Hanen will have final approval on Asarco's future.

Joseph F. Lapinsky, president and chief executive of Asarco LLC, said in an e-mailed statement that the board will review the judge's recommendation and consult with creditors to determine their next step.

Grupo Mexico spokesman Tom Johnson declined immediate comment.

Attorney Sandy Esserman, who represents asbestos claimants in the case, said they supported both plans. "We're glad he confirmed one and we look forward to closing," he said.

The outcome involves Asarco's three Arizona mining operations and a Texas refinery that were placed in bankruptcy in August 2005 when the company ran out of cash and faced hefty environmental liability and potential asbestos-related claims. Grupo Mexico lost control of Asarco shortly after the company filed for bankruptcy protection when independent directors were placed on the board.

A key issue in the bankruptcy proceeding is a separate more than $6 billion civil conviction against Grupo Mexico in which Judge Hanen found it fraudulently transferred stock in Southern Copper Corp., a Peruvian mining company, away from Asarco. Grupo Mexico is appealing that decision.

Asarco spurned Grupo's advances to reacquire the company when it accepted Sterlite's initial $2.6 billion buyout offer last year. But after copper prices plunged in the wake of the market meltdown, Sterlite backed out of the deal in October 2008, saying it wouldn't close the sale unless Asarco agreed to a price reduction. The acquisition price dropped to $1.7 billion and Sterlite has been steadily sweetening the pot since in an effort to win the battle with Grupo Mexico.