(4 pm. – promoted by ek hornbeck)
Nearly two weeks ago a chemical spill at a storage facility for Freedom Industries contaminated the water supply of over 300,000 West Virginians with 4-Methylcyclohexane Methanol which is used to “treat” coal supplies before they are shipped for burning. The plant is located just two miles up river from a water treatment plant. People were warned to not drink the water, but not before it sickened hundreds flooding emergency rooms complaining of nausea, vomiting, some dizziness, headaches, diarrhoea, reddening skin, itches and rashes,
The water has been declared safe, but the CDC has issued a warning to pregnant women to not drink the water. Now to protect themselves from liability, the Freedom Industries filed for bankruptcy on Friday. However, as Raw Story calls it, this is just a legal shell game
And in a brazen legal gambit, the owner of Freedom Industries has also created a shell company to provide financing to his bankrupt firm, which may allow him to retain much of the assets of the firm if and when it is dissolved in bankruptcy. [..]
The name of the owner of Freedom Industries, J. Clifford Forrest, also appears as an officer in a newly-formed firm – Mountaineer Funding LLC – which Freedom Industries named as the source of debtor-in-possession financing of up to $5 million. In a bankruptcy, the debtor in possession financier is typically placed at the head of the line of creditors making a claim on the assets of the firm. If a bankruptcy judge allows the financing to go forward, Mountaineer – and Forrest – might be expected to scoop up most of the assets of the bankrupt firm without any legal liability for the catastrophic environmental damages wrought by it.
MSNBC’s “All In” host Chris Hayes laid out just how this works for the owner and screws the citizens who suffered damages