Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, June 1, 1990 TAG: 9006010827
SECTION: VIRGINIA PAGE: A-3 EDITION: EVENING
SOURCE: By Mary Bishop Staff writer
DATELINE: LENGTH: Medium
ChemServ Environmental Company of Columbus, Ohio, Environmental Chemical Associates Inc. of Farmingdale, N.J., and Gundle Lining Construction Corp. of Houston filed Thursday for Chapter 7 relief from Kim-Stan under federal bankruptcy laws.
Officials of Kim-Stan, shut down by the state more than three weeks ago for numerous environmental problems, claim the company is broke. But county officials believe it earned millions of dollars taking thousands of truckloads of Northeastern garbage over the last 18 months.
Bill Terry, who petitioned in U.S. Bankruptcy Court in Harrisonburg on behalf of Environmental Chemical Associates, said Kim-Stan's creditors sought the court's broad powers to find out "where all the money went."
"We're going to turn over all the rocks until we find it," he said. "We are going to find it."
The company's attorney, Joe H. Roberts of Wise County, said last month that Kim-Stan also owes money to engineers and to the Richmond law firm of Hunton & Williams, which quit as the landfill's lawyers in March. Roberts said Kim-Stan owes a portion of the law firm's $550,000 bill.
A fourth company, Scott Trucking of New Castle, has sued Kim-Stan in state court for $17,900 the trucking firm claims is owed for hauling dirt and crushed stone to the landfill at Selma, near Clifton Forge.
Both ChemServ and Environmental Chemical were hired by Kim-Stan to haul leachate, the often toxic waters generated by landfills, to treatment facilities out of state.
A member of Roberts' staff said today Roberts was out of town until Monday and could not be reached for comment.
Under federal bankruptcy proceedings, an independent trustee could be appointed to examine company records.
On Thursday, an Alleghany County judge fined Kim-Stan $86,000 for violating the county's zoning ordinance.
General District Court Judge Kenneth C. King Jr. said the company's operation of a leachate pumping station on leased land across from the dump was illegal because Kim-Stan failed to get proper approval from the county. Testimony showed that Kim-Stan ignored the county's repeated warnings that the pump's operation was unlawful.
The dump was ordered to pay the maximum fine of $1,000 for each of 86 days it ran the pump early this year. Roberts said Thursday he would appeal that decision.
by CNB