A California group called the Council for Education and Research on Toxics is trying to tack a $9 billion claim onto Chemtura Corp.’s ongoing bankruptcy proceedings. Chemtura is the world’s largest maker of plastic additives, and has been a major producer of certain types of flame retardants, known as PBDEs. PBDEs have been linked to infertility and lower IQ scores, according to CERT’s court filing.
Chemtura and the company’s creditors have said CERT has no standing as a creditor and therefore cannot file a claim in bankruptcy court. CERT points to the continued, widespread effects of the chemicals as grounds for its claim. A scientist involved in CERT’s claim said, “PBDE’s can be found in the bodies of nearly all Americans where many of them persist for years.”
Two types of PBDE’s were phased out of production by 2004, and another type, manufactured by Chemtura, was banned in December. But many products treated with PBDEs, including household furniture, electronics and children’s toys, are still in use. In 2001, demand for the chemical in the North American market was about 33,000 metric tons.
Chemtura filed for bankruptcy last March and faces more than 10,000 claims related to chemicals it produces.
More on CERT’s case against Chemtura in Bloomberg news and in the Wall Street Journal.
