EPA Flays Lyondell Over Cleanup Obligations

Law360, New York (October 1, 2009, 2:24 PM EDT) -- Environmental regulators have lambasted Lyondell Chemical Co. for trying to shake off environmental liabilities in the course of restructuring, giving the debtor a stern reminder that the obligation to clean up toxic waste cannot be discharged through bankruptcy.

The U.S. government filed an opposition brief Wednesday in the U.S. Bankruptcy Court for the Southern District of New York, forcefully countering Lyondell’s objections to regulators’ assertions that injunctive obligations, unlike monetary claims, are not dischargeable in the Chapter 11 process.

After the U.S. Environmental Protection Agency and...
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