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Bankruptcy Judge Looks to Ok Deal in Spill Case

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Dave Mistich
/
West Virginia Public Broadcasting

A judge says he's looking to approve a $2.5 million bankruptcy deal involving the company behind a massive chemical spill last year.

In Charleston federal bankruptcy court Wednesday, Judge Ronald Pearson spoke favorably of the plan pushed by Freedom Industries, the state Department of Environmental Protection and creditors.

The plan says Freedom parent company Chemstream Holdings would add $1.1 million to clean up the Charleston spill site.

Freedom would contribute $1.4 million.

Previously, Freedom proposed only $150,000 for additional cleanup, which Pearson rejected.

The January 2014 spill spurred a tap-water ban for 300,000 people for days.

Pearson said his approval awaits the change of cleanup contractors at the spill site and related deadline extensions in the settlement.

The agreement says DEP can't sue Chemstream for the spill or cleanup.


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