• Environmental Claims and Bankruptcy - Managing Liabilities on an Uneven Playing Field
  • August 14, 2003
  • Law Firm: Goodwin Procter LLP - Boston Office
  • With increasing frequency, troubled businesses are choosing to resolve their problems in bankruptcy courts across the country. Prohibitive costs of environmental clean-up can precipitate a cash crisis that drives an unlucky business to seek refuge in Chapter 11 reorganization proceedings. More typically, businesses employ bankruptcy proceedings as a tool to manage an onslaught of unpaid claims, especially those arising from mass tort litigation. Regardless of what event precipitates it, a bankruptcy filing inevitably results in consolidating virtually all claims in one forum, hence the interests of governmental authorities and private parties holding environmental claims often are pitted against those of other creditors asserting rights to payment from the debtor's assets.