# CHEMISPHERE, INC. (I. JONES) > **Judicial** · FY1987 · — · Final Order With Specified Cost Recovery ## Case - **Activity ID:** `26718` - **Case Number:** 05-1987-0537 - **Type:** Judicial - **Lead:** EPA - **Outcome:** Final Order With Specified Cost Recovery - **Penalty assessed:** $0 - **Cost recovery:** $8K - **Compliance action $:** — - **Multimedia (multi-env):** N ## Defendants - CHEMISPHERE PARTNERS (complaint) (settlement) - CHEMISPHERE, INC. (complaint) (settlement) ## Summary CHEMISPHERE INC., FILE A VOLUNTARY PETITION FOR BANKRUPTCY IN THE UNITED STATES BANKRUPTCY COURT FOR THE NORTHERN DI- STRICT OF ILLINOIS ON MARCH 20, 1986. ON THE SAME DAY CHEMI SPHERE PARTNERS AND CHARLES W. MCKIEL, JR., THE PRESIDENT OF CHEMISPHERE, INC. AND GENERAL PARTNER OF CHEMISPHERE PART- NERS, ALSO FILED FOR BANKRUPTCY. ON NOVEMBER 20, 1987, U.S. EPA INTERVENED IN THE CHEMISPHERE, INC. BANKRUPTCY BY FILING OBJECTIONS TO THE DISCLOSURE STATEMENT FILED BY CHEMISPHERE, INC. ON OCTOBER 23, 1987. A HEARING WAS HELD BEFORE THE BANKRUPTCY COURT ON NOVEMBER 25, 1987. AT THIS HEARING, THE COURT RULED ON A PRIOR MOTION BY THE U.S. TRUSTEE TO CONVERT BOTH THE CHEMISPHERE, INC. AND CHEMISPHERE PARTNERS BANKRUPT CIES FROM CHAPTER 11 TO CHAPTER 7. THIS EFFECTIVELY REMOVED MCKIEL FROM CONTROL OF THE ASSETS OF CHEMISPHERE, INC. AND CHEMISPHERE PARTNERS. AT THIS HEARING, THE JUDGE ALSO HEARD ARGUMENTS FROM U.S. EPA ON OUR OBJECTION TO CHEMISPHERE, INC.'S DISCLOSURE STATEMENT. THE COURT DENIED THE PROPOSED DISCLOSURE STATEMENT. THE COURT ALSO ORDERED U.S. EPA TO SUBMIT ITS CLAIMS WITHIN 28 DAYS, BY DECEMBER 23, 1987,WITH OBJECTIONS TO SUCH CLAIMS TO BE FILED BY JANUARY 13, 1988. U.S. EPA IS CLAIMING THAT ITS REMOVAL COSTS ARE POST-PETI- TION ADMINISTRATIVE COSTS. TO SUCCEED U.S. EPA MUST SHOW THAT (1) CHEMISPHERE, INC. IS A LIABLE PARTY AND (2) THAT THE THE I. JONES RECYCLING SITE IS PROPERTY OF THE ESTATE. U.S. EPA WILL ALSO BE CLAIMING PENAL --- *Source: [EPA ECHO](https://echo.epa.gov/) · AI Analytics · CC0 1.0*