US Chemtura to pay $26m for environmental clean-ups

24 August 2010 23:22  [Source: ICIS news]

WASHINGTON (ICIS)--Chemtura Corporation has agreed to pay $26m (€21m) to cover clean-up costs at 17 sites across the US, the Environmental Protection Agency (EPA) said on Tuesday.

The agency said that Chemtura would make the payment as part of its bankruptcy reorganisation.

The specialty chemicals company and 26 of its affiliates filed for bankruptcy protection in New York State in March 2009. 

Earlier this month Chemtura obtained court approval for plans to line up more than $1bn in bankruptcy exit financing.

In a joint statement with the US Justice Department, the EPA said that the $26m in remediation funding will be used at 17 facilities or former sites in 15 states, including New York, California, Texas and New Jersey.

The agency said that 12 of the locations are on its list of the most serious hazardous waste sites requiring clean-up.

More than $8m of the $26m in clean-up funds would be devoted to remediation work at the Diamond Alkali site in New Jersey, the agency said.

As part of the agreement with the EPA and the Justice Department, Chemtura disposes of liabilities under multiple federal environmental statutes, including the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), commonly known as the Superfund law.

However, the settlement announced on Tuesday did not cover Chemtura’s environmental liabilities at the Gowanus Canal Superfund site, EPA said, noting that resolution of clean-up costs at that facility remain to be negotiated.

($1 = €0.79)

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By: Joe Kamalick
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