Maxus Energy Corp. is defending a $130 million settlement with its corporate parent over responsibility for the cleanup of New Jersey’s contaminated Passaic River, the Wall Street Journal reported today. Maxus was one of dozens of companies tagged with blame for discharging hazardous substances into the river decades ago. The company filed for bankruptcy in June after striking a bargain with owner YPF SA over its corporate parent’s alleged liability for the cleanup. Maxus’s deal with YPF, Argentina’s state-owned oil company, triggered a protest from Occidental Petroleum Corp.’s chemical subsidiary, known as OxyChem, which has been sparring with YPF for years over who should be on the hook for cleaning up the river. Lawyers for Maxus on Monday acknowledged the settlement “has engendered controversy” but maintained it was the best option “when compared to the risks of losing everything at trial and garnering no value for the debtors’ creditors.”
