Asarco, Other Ch. 11s Spark Debate Over Cleanups

Law360, New York (July 29, 2009, 6:45 PM EDT) -- The U.S. government is pushing for greater financial assurances upfront to prevent companies from shirking their environmental responsibilities if they go bankrupt. But at the same time, it may have lost some of its ability to negotiate settlements using the threat of joint and several liability, according to experts.

Over the years, companies that gave unfunded balance sheet guarantees or weakly funded guarantees often still received permits to operate environmentally sensitive projects. Then, when some of those companies went under, they were unable to pay for...
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