MoreThe EPA is giving thanks to have gotten something from a
chemical manufacturer seeking bankruptcy in lieu of major environmental
liabilities about to be passed on to the federal government. The U.S. Justice
Department and the United States Attorney for the Southern District of New York
announced on Wednesday, Nov. 24, 2010, that Tronox Inc., Oklahoma City, Okla.
(incorporated in Delaware), has agreed to resolve its environmental liabilities
for $270 million and 88 percent of the company's interest in a pending
litigation. The bankruptcy settlement will reimburse the EPA for past cleanup
costs and fund future cleanups at contaminated sites across the country.
Tronox and 14 of its affiliates filed for protection under Chapter 11 of the U.S. Bankruptcy Code on Jan. 12, 2009, in the U.S. Bankruptcy Court for the Southern District of New York. At the time of the bankruptcy filing, the company was potentially responsible for past costs incurred and future response costs under the CERCLA and RCRA relating to sites throughout the country, as well as for penalties under CERCLA, RCRA, the Clean Air Act, and the Clean Water Act.
Under the terms of the settlement, the company will pay $270 million in cash. The majority of the funding will be placed in five environmental response trusts for the cleanup of numerous sites, most of which have been contaminated with hazardous substances or waste. Non-cash assets, such as insurance and financial assurance assets worth at least $50 million, including property located in Henderson, Nev., will also be provided by Tronox to the environmental response trusts.
The multi-national chemical company makes and sells titanium dioxide and other specialty chemicals used in plastics, paper and inks. The company created through a spin-off from the Kerr-McGee Corporation. Several months after the spin-off was completed, Anardarko Petroleum Corporation purchased Kerr-McGee for $18 billion. Tronox is currently involved in litigation against Anadarko and Kerr-McGee over allegations that those companies imposed years worth of legacy liabilities, including environmental obligations on Tronox, leaving the company insolvent and undercapitalized. The trial is expected to begin in late 2011 or early 2012. According to the deal with the EPA, 88 percent of any settlement awarded to Tronox as a result of that litigation, will be used to fund additional cleanup efforts.
SOURCE: EPA press release
Tronox and 14 of its affiliates filed for protection under Chapter 11 of the U.S. Bankruptcy Code on Jan. 12, 2009, in the U.S. Bankruptcy Court for the Southern District of New York. At the time of the bankruptcy filing, the company was potentially responsible for past costs incurred and future response costs under the CERCLA and RCRA relating to sites throughout the country, as well as for penalties under CERCLA, RCRA, the Clean Air Act, and the Clean Water Act.
Under the terms of the settlement, the company will pay $270 million in cash. The majority of the funding will be placed in five environmental response trusts for the cleanup of numerous sites, most of which have been contaminated with hazardous substances or waste. Non-cash assets, such as insurance and financial assurance assets worth at least $50 million, including property located in Henderson, Nev., will also be provided by Tronox to the environmental response trusts.
The multi-national chemical company makes and sells titanium dioxide and other specialty chemicals used in plastics, paper and inks. The company created through a spin-off from the Kerr-McGee Corporation. Several months after the spin-off was completed, Anardarko Petroleum Corporation purchased Kerr-McGee for $18 billion. Tronox is currently involved in litigation against Anadarko and Kerr-McGee over allegations that those companies imposed years worth of legacy liabilities, including environmental obligations on Tronox, leaving the company insolvent and undercapitalized. The trial is expected to begin in late 2011 or early 2012. According to the deal with the EPA, 88 percent of any settlement awarded to Tronox as a result of that litigation, will be used to fund additional cleanup efforts.
SOURCE: EPA press release
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