WV Spill Company Could Have $3 Million Left By June

By
Associated Press

Dateline
Updated Tue, Mar 18, 2014 2:51 pm

UPDATE 2:50 p.m. The company that spilled chemicals into 300,000 West Virginians' water supply could have about $3 million left this summer before paying hundreds of creditors.

Freedom Industries Chief Restructuring Officer Mark Welch estimated in bankruptcy court Tuesday that $2.5 million to $3 million would remain in mid-June. He said the 51-employee company will cease business operations by the week's end.

Judge Ronald Pearson approved Freedom's hire of Welch Tuesday, despite concerns about pay rates. Welch estimated he could net Freedom $1 million by collecting payments and finding savings during environmental cleanup.

Freedom's deadline was Saturday to start demolishing the Charleston facility responsible for the Jan. 9 spill, which contaminated water for days.

Dozens of creditors are businesses and residents who sued Freedom over lost wages and profits during a water-use ban.


The company that spilled chemicals into 300,000 West Virginians' water supply is due in bankruptcy court.

A hearing is set for Tuesday in U.S. Bankruptcy Court in Charleston.

Among other motions, Freedom Industries is seeking to hire a chief restructuring officer as it winds down its 51-employee operations.

The company filed for bankruptcy about a week after the Jan. 9 spill.

A chemical used to clean coal spilled from the tank at Freedom Industries into the Elk River and contaminated the water for up to 10 days.

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