More than $2 million will be distributed to residents and businesses affected by a 2014 chemical spill in West Virginia under a liquidation plan approved by a bankruptcy judge, The Associated Press reported yesterday. Freedom Industries’ plan also will provide $1.4 million to the West Virginia Department of Environmental Protection and environmental firms for continued cleanup work. Freedom’s parent, Chemstream Holdings, is adding $1.1 million for the cleanup under an agreement with the agency. A $350,000 initial cash payment will be distributed to unsecured claims, plus future payments from potential recovery sources. The plan’s funding sources include about $2.7 million in sale escrow fund proceeds, $300,000 from a settlement with former Freedom President Gary Southern and $3.1 million from a settlement with Freedom’s insurer, AIG.
