BREAKING NEWS: City of Frisco joins TCEQ in filing motion to request U.S. bankruptcy judge to ensure that funds are available for cleanup of Exide’s Frisco lead smelter site
The city of Frisco filed a motion in federal bankruptcy court this week that joins the state in its efforts to secure funding for environmental cleanup at the closed Exide Technologies plant.
Exide filed for Chapter 11 bankruptcy protection last month. As part of the case, the company sought approval for a $500 million loan. The loan is secured mainly by the company’s assets. Its main purpose is to cover Exide’s operating expenses.
But that request puts payment of the company’s lenders ahead of any cleanup, according to the motion filed Tuesdayby the Texas Attor
ney General’s Office on behalf of the Texas Commission on Environmental Quality.
Attorneys for the city of Frisco joined that motion in their own filing on Wednesday.
“The motion seeks to limit the debtor’s ongoing or future environmental obligations at the debtor’s facility in Frisco,” city attorneys wrote in their motion.
They objected to the current proposal and asked for changes to the terms of Exide’s post-petition financing.
A hearing is set for July 24.
Exide closed its battery recycling plant and secondary lead smelter in November as part of an agreement with the city of Frisco. Its work to decommission the plant is ongoing. The company is also testing to determine the extent of contamination from hazardous levels of lead, cadmium and other substances. Those results will set the parameters for cleanup.
About 170 acres of buffer land owned by Exide is being handled through state’s Voluntary Cleanup Program. The city of Frisco intends to buy that land once cleanup is complete.
About 80 acres will go to the Frisco Economic Development Corporation. It could be redeveloped for offices or warehouses. The remaining 90 or so acres will go to the Frisco Community Development Corporation. Possibilities for reuse include parkland or municipal use, such as a fire training facility.
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Lead-Free Frisco 2011