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Biohazard, Inc. ( BI ) is a Cleveland, Ohio company specializing in the manufacture of battery acid for use in automobile batteries. For
Biohazard, Inc. BI is a Cleveland, Ohio company specializing in the
manufacture of battery acid for use in automobile batteries. For years, BI has
dumped industrial chemical waste in a "waste pond" behind their plant which is
located next to their headquarters building in Cleveland. BI continued to dump
waste into the pond until yesterday because there is no other way to dispose of
this waste, which is the byproduct of BI's innovative method of manufacturing
battery acid.
BI owes Cleveland Bank $ secured by the property on which BI
has its headquarters building and its manufacturing plant. The property was
appraised, as of last week, at $ and declining in value every day
because of the waste dumping.
Yesterday, the Environmental Protection Agency EPA a federal agency
with the power to take actions necessary to protect and clean up the
environment, obtained an judgment against BI The judgment called for BI to
cease and desist from dumping industrial waste into the waste pond and to clean
up the pond and restore the land to the condition it was in before BI owned the
property. BI estimates that the cleanup could cost $ Other than its
real property mentioned above, BI has approximately $ in cash, and no
other assets of any value. BI has unsecured creditors who are owed $
in total.
After receiving the judgment, BI filed a petition for relief under chapter
of the Bankruptcy Code.
Please:
Identify BI's creditors who may participate in BI's chapter case; Evaluate priorities of these creditor's result; and predict BI's chances of a successful chapter proceeding.
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