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Judge Calls for W.Va. Chemical Spill Agreement

Freedom Industries
Aaron Payne
/
West Virginia Public Broadcasting

  A bankruptcy judge is giving Freedom Industries, its insurer and stakeholders 10 days to strike an agreement on its $2.9 million insurance policy.

The company that contaminated West Virginia's largest water supply returned to bankruptcy court Tuesday in Charleston.

Freedom and 24 residents and businesses that sued after the spill proposed a $2.9 million settlement Friday using insurance. A board would pick projects benefiting the public to fund.

Former Freedom executives objected. Their lawyers said the insurance should cover their related legal costs.

They said more extensive coverage should apply, which would cost insurer AIG Specialty more.

The January spill caused a tap-water ban for 300,000 people for days.

U.S. Bankruptcy Judge Ronald Pearson gave lawyers another week to file briefs if a deal isn't reached.


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