Canadian Manufacturing

Chemical spill culprit Freedom Industries offers spill victims US$2.7M

The January 2014 spill contaminated 300,000 residents' water for days



CHARLESTON, W.Va.—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 May 1, 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.

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