Maxus Energy Files Chapter 11 Bankruptcy

by San Antonio Attorney

Maxus Energy filed for bankruptcy on June 17, 2016 following the deal with YPF SA, its corporate parent.  The arrangement requires YPF to provide Maxus Energy, along with four companies, $130 million in compensation.

YPF, an Argentina based company, purchased Maxus Energy in 1995.  Maxus and Tierra were guilty of disposing dioxin, a toxic chemical and potential carcinogen, into waterways during the 1950s and 1960s.

The predecessor company possessed ownership of a chemical plant located in Newark, New Jersey.  The state has accused the company of dumping toxic waste into the river.  The power plant has manufactured pesticides from 1940s to 1960s, which included Agent Orange, a chemical used during the times of Vietnam War.

The plant released dioxin and hazardous substances into the river over the years.  According to a New Jersey court, OxyChem was held entirely liable for cleanup and removal costs.

Last 2011, the court has ruled Maxus Energy as part of its sale last 1986.  This is to absolve OxyChem for all liabilities related to the pollution of the river.

The cleanup cost of the river area was covered by the Environmental Protection Agency.

YPF and Maxus have settled to pay $130 million to the New Jersey government, in order to settle majority of the pollution claims in 2013.

In 2014, OxyChem chose to pay $190 million to absolve its liability for polluting the river.

Maxus is held entirely responsible for providing OxyChem for that amount.  During the litigation process, schedule to begin by next week, OxyChem aims to extend responsibility to YPF.

Following the agreed settlement, YPF will pay Maxus a total of $63.1 million in bankruptcy loans.  These include oil and gas holdings such as the wells located in the Gulf of Mexico and other states.

According to the lawyers of Maxus, the primary objective is to reorganize the business to provide advantage to creditors, in order to keep the company afloat.

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