Bankruptcy court approves Mark Welch as chief restructuring officer to wind-down the company

CHARLESTON, W.Va. -- The chief restructuring officer that Freedom Industries may hire to help wind down business after its leak contaminated the water for 300,000 West Virginians won't come cheap.

According to a motion filed by Freedom, Mark Welch will be paid either an hourly rate of $425 or a fixed weekly fee of $17,000 for the first six weeks and $12,750 after that, whichever is less.

Welch said his work will actually result in efficiency and savings.

He said the company will save about $1 million by hiring him.

Freedom's motion was approved Tuesday by U.S. Bankruptcy Judge Ronald Pearson.

Pearson said Welch's hiring marks a "substantial change in management" for Freedom. Welch said he doesn't know how much additional services will be needed of the company's current president Gary Southern.

At the beginning of the hearing, Pearson asked why existing officers couldn't handle the wind down process. Welch responded Southern has been a "very good operator" and has stabilized operations. However, he said the next phase will be more difficult.

"It's hard to balance the balls in the air in a short period of time," Welch said, noting eliminating the amount of responsibilities would greatly help.

The court did not take up Southern's Saturday motion to get paid. A committee of unsecured creditors intends to file an objection to this motion.

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TODAY: Judge approves officer to head next steps of Freedom bankruptcy