W.Va. company running out of cash

CHARLESTON, W.Va. — The company that spilled chemicals into 300,000 West Virginians' water supply is expected to have about $3 million left this summer before it tries to pay back hundreds of creditors.

Freedom Industries Chief Restructuring Officer Mark Welch estimated in bankruptcy court on Tuesday that the company could be down to $2.5 million to $3 million in mid-June. He said the 51-employee company will cease business operations by the week's end.

Anthony Majestro, one of the lawyers representing West Virginia businesses suing Freedom Industries, said that wouldn't leave much help for citizens hurt by the Jan. 9 spill.

Dozens of businesses and residents have sued Freedom over lost wages and profits during a water-use ban. Their cases remain frozen while bankruptcy proceedings continue, and they are waiting in line with other creditors looking for compensation from Freedom Industries.

“It's not a surprising number,” Majestro said of the $3 million estimate. “As the judge has said, it's nowhere near enough to satisfy claims of all the people who have been harmed in the spill.”

Judge Ronald G. Pearson allowed Freedom to hire Welch on Tuesday, despite concerns about Welch's pay rate. The new officer would receive about $72,000 a month for six weeks and $54,000 monthly afterward, and could hire another expert at $375 per hour, court documents state.