- Associated Press - Tuesday, September 2, 2014

CHARLESTON, W.Va. (AP) — A utility is opposing a $2.9 million bankruptcy settlement that would fund projects to benefit 300,000 people whose water was contaminated in January.

West Virginia American Water says Freedom Industries shouldn’t use money from its insurance proceeds to pay for the projects. The company filed its opposition last week in U.S. Bankruptcy Court in Charleston.

Freedom’s spill in January spurred a tap-water ban for days. The company filed for bankruptcy eight days later.

The water company says the proposed settlement would keep thousands of creditors from recovering anything on bankruptcy claims.

The water company is seeking $1.1 million after replacing filters. It also wants Freedom to cover its potential damages in spill lawsuits.

The proposed settlement would let a yet-to-be-determined panel pick what to fund, potentially including long-term health monitoring.

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