Vertellus Specialties settlement with environmental agencies approved

By Wendy Van Sickle

Columbus, Ohio, Oct. 14 – Vertellus Specialties, Inc. reached a settlement agreement with several governmental environmental agencies over their objection to the company’s pending sale of substantially all of its assets, according to an agreement filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The court approved the agreement in an order filed on Friday.

The parties include the United States on behalf of the U.S. Environmental Protection Agency, the State of Ohio on behalf of the Ohio EPA, the State of Indiana on behalf of the Indiana Department of Environmental Management and the State of Utah on behalf of the Utah Department of Environmental Quality.

The governments objected to the proposed sale of the company’s assets and wind-down of its budget on Sept. 2, claiming they were inadequate to meet environmental compliance obligations.

The settlement agreement modifies the wind-down budget to increase the line item for environmental expenses to $1 million from $450,000, with not less than $550,000 going into an environmental response trust. The company may use up to $450,000 for work expenses incurred after closing but prior to the effective date under a confirmed plan or dismissal of the Chapter 11 case.

Vertellus expects work expenses to total about $220,000, and any portion of the work budget that is not used will go into the environmental trust.

The company said on Sept. 8 that it expects its asset sale to close on or about Oct. 31, and it expects to seek confirmation of a plan “soon thereafter.”

Vertellus is an Indianapolis-based provider of specialty chemicals for the agriculture, nutrition, pharmaceutical and medical, personal care, plastics, coatings and industrial markets. The company filed bankruptcy on May 31 under Chapter 11 case number 16-11290.

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