Regulators Warn of Environmental Fallout
The Pennsylvania Department of Environmental Protection (DEP) also objected, warning that the sale neglected a massive $30 million environmental cleanup liability.
DEP attorney Brian Greenert argued that under bankruptcy law, environmental obligations should take priority, even over secured creditors.
“Injunctive obligations come first,” Greenert declared, citing precedents where courts placed environmental duties above financial claims.
Corsa countered that Key Bank had already earmarked nearly $1.4 million for a wind-down budget, including some environmental remediation. But DEP pushed for half of Key Bank’s proceeds to be diverted toward cleanup efforts.
Judge Deller rejected DEP’s argument, ruling that the agency had no direct lien on Corsa’s assets and thus no claim to override Key Bank’s position.
A Precarious Future for Corsa’s Legacy
With the sale finalized, the ruling marks a pivotal moment in Corsa’s bankruptcy saga, but major uncertainties remain. The fate of abandoned mine sites, environmental liabilities, and potential litigation fallout continues to cast a shadow over the company’s legacy.
As coal’s decline accelerates, the case highlights a broader battle between creditors seeking financial recovery and regulators fighting to enforce environmental accountability—a conflict far from over.
