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UPDATE: Bankruptcy Judge has Concerns Over Freedom Sale

By: The Associated Press Email
By: The Associated Press Email

UPDATE 5/8/14 @ 11:38 a.m.
CHARLESTON, W.Va. (AP) - A bankruptcy judge is concerned that a company responsible for a West Virginia chemical spill wants to sell remaining property to a company tied to former executives.

Freedom Industries has filed a motion to sell chemicals and property at a leased secondary facility, Poca Blending in Nitro, to Lexycon LLC.

Lexycon President Kevin Skiles and independent consultant Dennis Farrell are former Freedom executives.

Lexycon was formed in Florida in March.

In court filings Wednesday, Judge Ronald Pearson questioned possible advantages for insider interests, transparency issues and opportunity for participation in the sale.

Pearson also questioned Freedom's timeframe. Freedom wants to sell by May 20 to let Lexycon prepare for its dust control product season.

A preliminary hearing is set for Tuesday.

The January spill contaminated 300,000 people's water for days.



ORIGINAL STORY 5/6/14 @ 4:24 p.m.
CHARLESTON, W.Va. (AP) - The now-bankrupt company at the center of West Virginia's chemical spill wants to sell what's left at its other site to a company tied to former executives.

Freedom Industries filed court motions Monday seeking permission to sell chemicals and property in Nitro at Poca Blending, which Freedom leases. Lexycon LLC would be the buyer.

Lexycon President Kevin Skiles and independent consultant Dennis Farrell are former Freedom executives. The company was formed in Florida in March.

Freedom's motion says the sale would save $387,000 in net costs, like potentially demolishing the Poca site. Instead, Freedom would sell to Lexycon for $575,000.

Dozens of businesses suing Freedom are among the creditors seeking its dwindling assets.

The Jan. 9 spill contaminated 300,000 people's water for days. Freedom filed for bankruptcy Jan. 17.


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