On January 17, 2014, Freedom Industries, Inc. (“Freedom”) filed bankruptcy under federal law, and the bankruptcy case is pending in the United States Bankruptcy Court for the Southern District of West Virginia (the “Court”). The Court has entered an order establishing August 1, 2014, as the deadline for creditors to file proofs of claim in the bankruptcy case.
Below are some frequently asked questions and answers about the proof of claim process. Keep in mind that neither the Clerk of Court nor the Court-appointed Claims Agent can provide legal advice about the bankruptcy case. Anyone with questions about the claims process or who needs administrative assistance with the claims process can contact the Claims Agent staff at 1-866-245-0312 or by emailing inquiries to claimagent@elkriverwvspill.com.
What is a claim?
A “claim” is a right to a payment from Freedom for any reason.
Can a person file a claim for damages as a result of the Elk River Chemical Spill Incident?
Yes. Individuals have asserted claims against Freedom on account of chemicals spilled into the Elk River on January 9, 2014 (the “Chemical Spill”). Any person who has suffered damages, losses, or injuries arising from the Ek River Chemical Spill can file a claim. Persons who have suffered inconvenience, aggravation, and the like may have a legally valid basis for asserting claims against Freedom for compensation. These creditors are referred to as "Elk River Spill Claimants".
Can a business file a claim for damages as a result of the Chemical Spill?
Yes. Businesses have asserted claims against Freedom on account of the Chemical Spill because their business was closed or incurred additional expenses as a result of the Chemical Spill.
Can a person or business file a claim that was not caused by the Chemical Spill?
Yes. Creditors who are owed debts by Freedom for any reason can file a claim. Examples of claims that are not caused by the Chemical Spill include trade creditors whose bills were not paid and employees of Freedom Industries whose wages were not paid. These creditors are referred to as "General Creditors".
What is the deadline to file a Claim?
The last day for all creditors to file a claim is August 1, 2014.
Can I file a claim over the internet?
Yes. Both Elk River Spill Claimants and General Creditors can file claims over the internet. The proof of claim must be filed by midnight (Eastern Standard Time) on August 1, 2014. The Clerk of the Bankruptcy Court has designed a Proof of Claim form that can be completed and filed electronically. To file a claim electronically go to www.wvsb.uscourts.gov. Hover on "Case Info“ from the maroon menu bar across the top and then click Case Info at the bottom of the menu.
Can I file a Proof of Claim on paper?
Yes. Both Elk River Spill Claimants and General Creditors can file proofs of claim on paper. The Proof of Claim form can be completed on paper and must be received by the Clerk of Court, either by mail or in person by 5:00 P.M. on August 1, 2014. The Clerk’s address is: Bankruptcy Court Clerk, Robert C. Byrd Federal Courthouse, 300 Virginia Street East, Room 3200, Charleston, West Virginia, 25301. There are different proof of claim forms for Elk River Spill Claimants and General Creditors.
General Creditors who are on the Court's mailing matrix will be mailed a proof of claim form for General Creditors, which can be completed and filed. General Creditors can also obtain a proof of claim form for General Creditors by: (a) downloading it from the Court's website at www.wvsb.uscourts.gov; or (b) emailing the Claims Agent at claimagent@elkriverwvspill.com; or (c) contacting the Claims Agent staff at 1-866-245-0312.
Elk River Spill Claimants can obtain the Elk River Spill Claimant Proof of Claim form by: (a) downloading it from the Court’s website at www.wvsb.uscourts.gov; or (b) visiting designated locations which are listed on the Court’s website under the heading “Elk River Spill Claimant Proof of Claim Form Locations”; or (c) emailing the Claims Agent at claimagent@elkriverwvspill.com; or (d) contacting the Claims Agent staff at 1-866-245-0312.
What if I don’t file a claim?
If you are an Elk River Spill Claimant and you do not file a claim, then you will likely forfeit your right to payment on your claim from the Freedom Industries bankruptcy case and your right to vote on any Plan proposed in the bankruptcy case.
If you are a General Creditor and you do not file a claim and are not listed on Freedom's schedule of claims, as stated below, then you will likely forfeit your right to payment on your claim from the Freedom bankruptcy case and your right to vote on any Plan proposed in the bankruptcy case. Freedom has filed bankruptcy schedules of claims in this case. Any creditor who has a claim that is listed on those schedules and is not listed as disputed, contingent, or unliquidated as to the amount, may but is not required to file a proof of claim in this case. Creditors who are not scheduled or whose claims are listed as disputed, contingent, or unliquidated as to the amount, and who desire to participate in the case or share in any distribution must file a proof of claim. A creditor who desires to rely on Freedom's schedules of claims has the responsibility for determining that the claim is listed accurately.
What if I have questions about the Proof of Claim form or about filing my claim?
The Bankruptcy Court has appointed James W. Lane, Jr., with the law firm Flaherty Sensabaugh Bonasso PLLC, as the Claims Agent in this case. For information or assistance you can call toll-free the Claims Agent’s staff at 1-866-245-0312. You can also email the Claims Agent at claimagent@elkriverwvspill.com. The Claims Agent can provide administrative and informational assistance to help you file your claim. The Claims Agent is not acting as your legal counsel and cannot provide you with legal advice.
Do I need a lawyer to file a claim?
You are not required to have a lawyer to file a claim. If you want legal advice, you may retain counsel of your choosing to represent you. The Claims Agent cannot recommend attorneys to you. The Claims Agent can provide you a list of attorneys who are representing other claimants against Freedom.
Do I need to file receipts or other documentation with my claim?
For Elk River Spill Claimants, business losses must be accompanied by copies of documentation explaining the losses. For personal damages, you are not required to file documentation of your losses with the claim. All creditors and claimants should retain the original of all documentation of their losses.
What if my claim is not for a certain amount?
If you have such a claim, the Proof of Claim form provides you with an opportunity to declare your claim and to describe the details giving rise to the claim. You should assign a dollar amount to your claim based on your best estimate; you may file an amended Proof of Claim at a later date if the amount changes.
How will the court establish the dollar amount of “unliquidated” claims?
The value of “unliquidated” claims can be established in court based on evidence presented for and against the claim, or possibly by the Court estimating the value of such claims without a full evidentiary hearing.
Can Freedom Industries or other parties object to my claim?
Yes. Freedom and the Unsecured Creditors Committee have the right to file objections to Proofs of Claim. If an objection is filed to your Proof of Claim, you will be provided notice of the objection and the basis for the objection by mail.
Will I receive confirmation that my Proof of Claim form was received?
All claims can be viewed on the Court’s website here (lists are updated every 24 hours).
If you file a paper claim, you can file a copy of the claim along with a self-addressed stamped envelope and the Court will mail you the copy, stamped by the Court with the date it was received by the Court.
When will I receive payment for my claim if awarded damages?
When or if a distribution will be made to creditors in this case is not known at this time.