Evidence collection began when U.S. Attorney's office first issued subpoenas

CHARLESTON, W.Va. -- A federal bankruptcy judge authorized Freedom Industries to pay a company to help it preserve and catalog electronic evidence.

The company, represented by attorney Stephen L. Thompson, appeared for Tuesday's expedited hearing on the Freedom's motion to pay Vestige Ltd.

The reason Freedom wanted an expedited hearing, according to the motion, is so it could ensure continued compliance with requests served through the Attorney General's office, grand jury subpoenas and litigation hold notices.

Thompson explained this electronic evidence includes cell phone, computer, email and other data from current and former officers and anyone else associated with Freedom. The cost to the estate will be $42,555.

In the hearing, Thompson said evidence collection began when the U.S. Attorney's office first issued subpoenas, which he said was around the beginning of last month.

Jared Tully, on behalf of the committee of unsecured creditors, did not have any objections to the motion.

Freedom Industries filed for Chapter 11 bankruptcy on Jan. 17, following the Jan. 9 discovery of crude MCHM leaking into the Elk River.

In an earlier hearing, Freedom Industries' attorneys announced the company would scale back its business and may cease to exist at some point in the future.

As previously reported, even though business is winding down, attorneys said the case is not converting to Chapter 7 bankruptcy, or straight liquidation, and will remain under Chapter 11 proceedings.

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Freedom given OK to hire firm that will help preserve evidence