EPA v. Vertellus Specialties Inc. (NC)(NLP)

Case summary

The United States, on behalf of EPA and other federal agencies, filed a Proof of Claim in this multi-regional bankruptcy action on November 28, 2016. Region 2?s claim arises because debtor Vertellus Specialties is the corporate successor of Reilly Industries Inc. which owned and operated a facility from which hazardous substances were released into the Lower Passaic River, a part of the Diamond Alkali Superfund Site in New Jersey. Vertellus, although a small contributor, is thus liable for response costs incurred by EPA pursuant to Section 107(a) of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), 42 U.S.C. 9607(a). On February 24, 2017, the Bankruptcy Court for the District of Delaware issued an order confirming the Chapter 11 Plan of Liquidation (Confirmation Order) in the bankruptcy proceeding of Vertellus Specialties, Inc., et al. The Confirmation Order, which resolves the bankruptcy proceeding, also approved an Environmental Response Trust Agreement (ERT) by and among VSI Liquidating Inc. (formerly known as Vertellus Specialties, Inc.), the Trustee, the United States, and a number of States. The ERT will address environmental remediation at certain Trust owned property sites and pursue insurance claims for the benefit of the ERT and the ERT beneficiaries. Pursuant to an insurance allocation, Region 2 will recover (for the Diamond Alkali Superfund Site) 2.45% of future insurance proceeds.

Defendants (1)

• VSI Liquidating Inc. f/k/a Vertellus SpecialtiesNamed in complaintNamed in settlement

Facilities (1)

• DIAMOND ALKALI CO.

  80 LISTER AVE, NEWARK, NJ, 07105

  Registry ID: 110009324409

Statutes cited

• CERCLA 107A — Cost Recovery

Enforcement conclusions (1)

• Vertellus Specialties Inc. (NC)(NLP)entered 2017-02-24

  Primary law: CERCLA

Timeline (5 milestones)

• 2016-08-04Referred To Dept Of Justice
• 2016-08-11Enforcement Action Data Entered
• 2016-11-28Complaint Filed With Court
• 2017-02-23Final Order Lodged
• 2017-02-24Final Order Entered