Bankruptcy Case Examples - astswmo

April 28, 2016 Prepared for the Association of State and Territorial Solid Waste Management Officials, Inc., (ASTSWMO),

Bankruptcy Case Examples

Leo Mullin, Environmental Liability Assessment, LLC 215 826-0462 [email protected]

Bethlehem Steel • Bankruptcy 363 Asset Sale – Allows for the sale of a business to a purchaser. – Due to executory authority, the sale may include broadly written provisions that release purchaser from existing regulatory obligations.

• Asset Sale allowed for the sale of portions of the steel manufacturing business to be purchased by International Steel Group (ISG). – ISG assumed responsibilities under existing consent decrees and administrative orders. – ISG did not comply with RCRA financial assurance requirements.

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Standard Chlorine Site

• Closing of facility – Identified key staff who could run treatment plant. • Financial Assurance – Limited to only one phase of the cleanup. – Financial assurance was not adequate for that portion and did not consider other cleanup obligations that were created once operations ceased. • Abandonment of the facility created new challenges. – Negotiated recovery from sale of assets. – Commitment to designate a person authorized to agree to land use restrictions. 3

• Chemtura

Stoney Creek Site

– Prior owner operator – Entered into tolling agreements with the current owner operator.

• Initial Claim – Calculated on first phase of a removal cleanup. – Allocation based on existing inventory levels.

• Revised claim – Considered costs to dismantle and clean equipment, soils and groundwater. – Allocated costs based on period of ownership.

• Increased the proof of claim significantly.

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