Freedom Industries Files Bankruptcy Amid Chemical Spill

Freedom Industries has filed for bankruptcy amid a highly publicized West Virginia chemical spill. The Chapter 11 bankruptcy will allow the company to continue to operate as they reorganize their finances.

On January 9, residents of Charleston, West Virginia, noticed an offensive odor. Many said it smelled like licorice or cough syrup. Within hours, it was determined that the odor originated from the Freedom Industries chemical facility, which produces components used in coal production.

An inspection of the site revealed a leak in one of the tanks. A containment system was in place around the tank. However, the chemical eventually overflowed. The tank contained 4-methylcyclohexane methanol, which is a foaming agent.

The toxic chemical was spilling directly into the Elk River. Although it is unclear how much of the chemical ended up in the river, the original tank held nearly 40,000 gallons.

As reported by NBC News, the chemical spill was in close proximity to the Kanawha Valley water treatment plant intake. The plant supplies water to nearly 300,000 people in nine counties.

The disaster prompted Governor Earl Ray Tomblin to declare a disaster and have the water turned off. Residents were warned to avoid using tap water for any reason, as the chemical is unsafe to consume and may cause skin irritation.

Although water has been restored to a majority of the region, the disaster sparked 20 lawsuits within the last week. The bankruptcy may protect Freedom Industries from paying any damages caused by the toxic spill.

A total of 14 reported illness were blamed on the tainted water. However, their injuries were not severe. Although few people were physically harmed, the spill took a toll on the local economy, residents, and the ecosystem.

Businesses in nine counties were forced to close for more than 24 hours, as their water was tainted. Some businesses are still closed and losing money. Hundreds of thousands of residents’ lives were disrupted, as they were unable to shower, complete household chores, or cook with the water.

The overall impact on the river and the ecosystem is hard to predict. However, plants and animals that live along the river are a serious concern.

Environmental activist and attorney Erin Brockovich visited the site and said the spill was obviously caused by negligence:

“It would’ve cost so much less to identify the leak, report the leak, fix the leak instead of ignore the leak. This is going to be hundreds of millions of dollars.”

Freedom Industries may have avoided paying damages. However, their operational standards will be under close scrutiny.