MAY 1, 2015
CHARLESTON, W.VA. (AP)
Freedom Industries wants to wrap up its bankruptcy case by
paying a variety of groups $6.7 million, including $2.7 million for victims of
the company's January 2014 chemical spill that sullied the water
supply across nine counties.
The company offered its liquidation proposal in a Charleston
federal bankruptcy court filing Thursday. Freedom also urged quick action to
hold a vote of claimants and a hearing on the plan by mid-June.
Freedom's January 2014 spill spurred a ban on tap
water for 300,000 people for days. Businesses that couldn't operate without
water, including restaurants, and individuals are among those seeking payouts
from Freedom.
Of the $2.7 million for spill victims, $500,000
would be earmarked for people with claims of $3,000 or less.
Freedom intends to pay $2.2 million to professionals hired
for the bankruptcy case. However, U.S. Bankruptcy Judge Ronald Pearson
previously has been skeptical of the fees sought by lawyers, consultants and
other professionals in the case.
Other creditors would get $500,000, an additional $500,000
would pay taxes to the IRS, and $150,000 would go to state regulators as they
work to finish cleanup at the Charleston site of the spill.
The bulk of the money would come from a $3.2 million
insurance settlement and a $3.1 million contribution by former Freedom
officials.
Of the $3.1 million, former Freedom President Gary Southern
would kick in $300,000.
About $2.8 million would come from an account with Freedom's
parent company that was set up when it bought Freedom just before last
year's spill.
Southern and former Freedom official Dennis Farrell have
pleaded not guilty to federal pollution charges in the spill. Southern also
pleaded not guilty to bankruptcy fraud charges, which say he tried to shield
his personal wealth from lawsuits in the spill's aftermath.
Four other former Freedom officials and the company itself
have pleaded guilty to pollution charges.
The Charleston Gazette first reported the bankruptcy
proposal.