Freedom Industries' Bankruptcy Case Moves Forward
Shortly after the West Virginia chemical spill on January 9, Freedom Industries filed for Chapter 11 bankruptcy, a move that sparked numerous questions and concerns from the many West Virginians who filed claims against the company. Many of these claims came from local businesses, restaurants, and employees who lost wages as a result of mandatory closures and a questionable water supply.
As officials and medical experts continue to offer West Virginians little reassurance about the safety of the water supply, Freedom Industries has battled its own dilemma in the form of its bankruptcy filing. During a bankruptcy hearing last Friday, the company announced that it would be winding downs its business, given that Freedom's problems "far outweigh its size." During a creditors' meeting this past Tuesday - February 25 - Freedom Industries president Gary Southern and CFO Terry Cline reiterated that point, in addition to other sentiments.
Following the Federal court hearing, Gary Southern - who had previously withheld much commentary regarding the spill - expressed concern for local residents affected by the spill, as well as Freedom employees. In addition to Southern's statements, the hearing focused on questions regarding Freedom's ability to pay creditors, as well as the company's insurance policies. If Freedom Industries was an additional insured on other policies, it would mean more funds to pay creditors and plaintiffs' claims.
The bankruptcy case and investigations are ongoing, and will likely remain a concern for many plaintiffs. Our very own Attorney Bernie Layne recently appeared on Fox Business to discuss Freedom Industries' bankruptcy filing and what it means for those who suffered damages. You can view the video on this blog.