Bankruptcy Judge Approves $2.5M Cleanup Deal in West Virginia Spill Case

A bankruptcy judge has approved a $2.5 million deal involving the cleanup of a massive 2014 chemical spill in West Virginia.

The order July 8 by U.S. Bankruptcy Judge Ronald Pearson says the agreement is in the best interests of Freedom Industries, the company’s estate and its creditors.

Freedom will contribute $1.4 million and its parent, Chemstream Holdings, will add $1.1 million to clean up the spill site.

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

The cleanup plan was pushed by Freedom, the state Department of Environmental Protection and creditors. The agreement says DEP can’t sue Chemstream for the spill or cleanup.

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

Topics Legislation Virginia