"What we've learned is post petition events have caused the debtor to recognize it's going to have to shut down a large part, if not all of its facility," U.S. Bankruptcy Judge
Pearson asked if there was anything in the last few weeks that made the company come to this realization.
"The company's problems far exceeds its size," Freedlander said. "That's the start and finish of the dialogue."
Pearson approved an order substantially modifying
Attorneys said the company may not even need the money that is currently held in the estate's account. The company is working to figure out how much money it needs to go forward, especially addressing environmental issues. Attorneys said they do not yet know how much environmental mitigation will cost.
Although the business is winding down, attorneys said the case is not converting to Chapter 7 bankruptcy, or straight liquidation, and will remain under Chapter 11 proceedings.
Lawyers for the company said they are not considering Chapter 7 bankruptcy, which leads to liquidating assets, but instead will remain in Chapter 11 proceedings, which protects the company from creditors during reorgnization.
At some point, though, lawyers said, Freedom will cease to exist.
Lawyers at this morning's hearing said the company has conducted business with customers to provide an orderly transition. It's also working with employees to help them find new jobs.
Lawsuits began pouring in against the company around
By the time Freedom filed bankruptcy, 30 lawsuits had been filed. However, an automatic stay afforded by the bankruptcy filing meant all lawsuits against the company are put into "time out," as attorney
One of the main things the court will take up in today's hearing is the final hearing on Freedom's financial motion, which took up most of the time in last month's 6-hour-long hearing on several first-day motions.
Under this agreement, Freedom gets a cash infusion of
So far, lawyers said this morning, the company has not needed the
Freedom also will present its motion to hire experts and consultants to look into details of the chemical leak.
The court granted Freedom's motion earlier this week to hear this motion on an expedited basis.
In its earlier filings, Freedom requested to hire experts and consultants to assist in remediation of the site, help preserve evidence and help in the defense against lawsuit allegations.
The reason Freedom wanted an expedited hearing to hire experts is because it wants them to take a look at details surrounding the leak before evidence is removed or destroyed in the remediation process, according to the filing.
Freedom also filed a motion last Friday to hire
The firm will investigate how the soil, groundwater and surface water were affected by the leak and will look at ways to address these effects.
The court also will hear Freedom's motion to hire
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