Freedom Industries Continues Operating Under Bankruptcy Deal
Freedom Industries reached a bankruptcy court deal this week for up to $4 million in credit from a lender to help continue operations. The deal lets the company continue paying its 51 employees in the short term, a biweekly payroll of about $172,000, according to a company attorney. The company can also continue paying costs for environmental remediation and will have money for critical day-to-day administrative expenses, and can pay top vendors, according to the attorney. The Chapter 11 bankruptcy filing freezes dozens of lawsuits against the company. Many are by local businesses owners who say they lost money during a water-use ban that lasted several days. State and federal investigations into the spill of a coal-cleaning chemical are continuing.