Tag: Bankruptcy

Patriot Coal Files for Bankruptcy Protection

Patriot Coal Corp. has filed for Chapter 11 bankruptcy protection for the second time in three years. The company made the filing Tuesday in U.S.…

Patriot Coal Corp. has filed for Chapter 11 bankruptcy protection for the second time in three years.

    

The company made the filing Tuesday in U.S. Bankruptcy Court for the Eastern District of Virginia. It had emerged from an earlier bankruptcy case in December 2013 in Missouri.

Patriot says it is involved in active negotiations for the sale of its operating assets to a strategic partner.

Patriot has eight active mining complexes in West Virginia. It is based in Scott Depot and employs about 2,900 people.

United Mine Workers of America spokesman Phil Smith says the union was reviewing the filing. He declined immediate comment.

Freedom Industries Offers $6.7 Million Plan; $2.7 Million for Victims

Freedom Industries is proposing paying $6.7 million to various parties, including victims of the company's January 2014 chemical spill.In Charleston…

Freedom Industries is proposing paying $6.7 million to various parties, including victims of the company’s January 2014 chemical spill.

In Charleston federal bankruptcy court Thursday, the company proposed a plan to offer spill victims $2.7 million.

The January 2014 spill contaminated 300,000 residents’ tap water for days. Businesses that couldn’t operate without water, including restaurants, and individuals are seeking compensation.

About $2.2 million would pay professionals hired for the bankruptcy case. Other creditors would get $500,000, an additional $500,000 would pay the IRS taxes, and $150,000 would go to state regulators for spill site cleanup.

An insurance settlement would provide $3.2 million, and ex-Freedom officials would contribute $3.1 million.

Freedom wants a vote of creditors and a hearing on the plan by mid-June.

The Charleston Gazette first reported the proposal.

Freedom Industries' Bankruptcy at Crossroads

  A federal bankruptcy judge is calling for parties to meet to discuss how to conclude the case of Freedom Industries, whose January 2014 chemical spill caused a tap-water ban for 300,000 people for days.

The Charleston Gazette reports Judge Ronald Pearson scheduled a March 3 status conference in the case.

In a Feb. 6 order, Pearson noted more than $300 million in claims had been filed against Freedom. Spill victims filed 3,800 of them.

Pearson said Freedom has $1.5 million left after starting the case with almost $16 million.

Pearson said the court isn’t comfortable deciding a proposed $3.2 million insurance settlement without consulting spill claimants. Ex-Freedom President Gary Southern has objected to the settlement.

Southern, five other ex-Freedom officials and the company itself face charges in the spill.

Bankruptcy Judge Approves $2.9 Million Chemical Spill Settlement

A federal bankruptcy judge has approved a $2.9 million settlement to benefit 300,000 people whose water was contaminated in a January chemical spill.…

A federal bankruptcy judge has approved a $2.9 million settlement to benefit 300,000 people whose water was contaminated in a January chemical spill.

  Judge Ronald Pearson filed the order Tuesday in U.S. Bankruptcy Court in Charleston. A U.S. District Court judge’s approval is also needed.

The proposal would rely on insurance proceeds from bankrupt Freedom Industries. The company’s January spill spurred a tap-water ban for days. Freedom filed for bankruptcy eight days later.

The settlement would let a yet-to-be-determined panel pick public interest projects to fund, potentially including long-term health monitoring or more water testing.

The company whose water supply was contaminated opposed the deal. West Virginia American Water said the settlement would keep thousands of creditors from recovering anything on bankruptcy claims.

The Charleston Gazette first reported the order.

Judge Worried Freedom Industries May Abandon Spill Site

  A bankruptcy judge is concerned that a chemical company may abandon the site of a massive January spill without cleaning it up.

Judge Ronald Pearson expressed the concern in an order filed Friday in U.S. Bankruptcy Court in Charleston.

The order points out that Freedom Industries’ plan to liquidate says the company expects to pay $850,000 or less to remediate its Charleston spill site.

Freedom’s plan says it may alternatively abandon the site, subject to court order.

Pearson wrote that it would be unacceptable for Freedom to risk not completing environmental obligations while spending millions of dollars on dozens of lawyers. Freedom is under state orders to demolish and remediate the site.

Freedom’s spill contaminated tap water for 300,000 people for days.

The Charleston Gazette first reported Pearson’s order.

Utility Opposes $2.9 Million Deal in Freedom Industries Bankruptcy Case

A utility is opposing a $2.9 million bankruptcy settlement that would fund projects to benefit 300,000 people whose water was contaminated in January.West…

  A utility is opposing a $2.9 million bankruptcy settlement that would fund projects to benefit 300,000 people whose water was contaminated in January.

West Virginia American Water says Freedom Industries shouldn’t use money from its insurance proceeds to pay for the projects. The company filed its opposition last week in U.S. Bankruptcy Court in Charleston.

Freedom’s spill in January spurred a tap-water ban for days. The company filed for bankruptcy eight days later.

The water company says the proposed settlement would keep thousands of creditors from recovering anything on bankruptcy claims.

The water company is seeking $1.1 million after replacing filters. It also wants Freedom to cover its potential damages in spill lawsuits.

The proposed settlement would let a yet-to-be-determined panel pick what to fund, potentially including long-term health monitoring. 

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