Company Tied to Destructive West Virginia Chemical Spill Files C-11
In a reminder that a company can go from relatively financial stable to hurdling towards insolvency rapidly because of an accident or disaster, the company tied to a chemical spill that affected the West Virginia water supply has filed for bankruptcy protection.
On Friday, Freedom Industries Inc. filed for Chapter 11 in U.S. Bankruptcy Court in Charleston, WV, a city among many communities affected by a tainted water supply following a spill discovered on January 9. Freedom officials tied the filing solely to expected lawsuits and liabilities that are undoubtedly facing the company. It is being blamed for a leak of the chemical methylcyclohexane methanol, which is used in coal processing operations and jet fuel production, into the Elk River. Hundreds of thousands were left for days without water for drinking or bathing, and more than 100 state residents were hospitalized within the first week since the incident. Payment demands from creditors and suppliers starting shortly after news broke of the chemical spill was reportedly listed in Freedom’s bankruptcy filing.
- Brian Shappell, CBA, CICP, NACM staff writer