Alabama landfill owner files for bankruptcy despite lucrative deal for TVA coal ash

Ala. landfill owner bankrupt despite TVA ash deal

UNIONTOWN, Ala. — The owners of a west Alabama landfill have filed for bankruptcy protection despite a multimillion-dollar contract to accept tons of coal ash spilled in an environmental accident at a Tennessee Valley Authority power plant.

The bankruptcy petition was filed Tuesday in Mobile by Perry Uniontown Ventures LLC and Perry County Associates. The companies own the land and permits for the Arrowhead Landfill, which has accepted tons of coal ash spilled at a Tennessee power plant in 2008.

According to court documents, landfill operators Phillips and Jordan Inc. and Phill-Con Services have a multimillion-dollar contract with TVA to accept coal ash from Kingston, Tenn., site of the spill. But the owners of the landfill accuse the companies operating it of withholding money from them.

The landfill owners claim the late payments forced them into Chapter 11 bankruptcy protection. Also, Perry County has yet to receive almost $780,000 in dumping fees even though the landfill operators have received millions of dollars from TVA, according to court documents.

Stuart Davis, an executive with Phill-Con Services, declined comment Wednesday on the bankruptcy petition.

Jeffery J. Hartley, attorney for the landfill owners, said they had no choice but to petition for Chapter 11 protection because the operators have refused to pay them.

Hartley, in a statement, said the operation of the landfill would not be affected while the business dispute is sorted out.

“The Arrowhead Landfill has all of the elements necessary to pay its obligations, to be profitable and to ensure the safe disposal of coal ash from the Kingston Plant …,” Hartley said. “The facility will continue to operate safely and with the extraordinary standard of excellence established throughout the facility’s life.”

The landfill is the subject of lawsuits being prepared by Florida-based environmental lawyer David A. Ludder on behalf of about 150 Perry County residents. The bankruptcy filing delayed the filing of the suits, Ludder said.

“With bankruptcy comes an automatic stay against new litigation against the bankrupt party,” Ludder said. “So the residents will not be able to file a lawsuit against the two bankrupt parties until their bankruptcy is resolved.”