Marcal Paper Mills, Inc. has filed for bankruptcy under Chapter 11, and is a potentially responsible party under CERCLA Section 107 for costs incurred and to be incurred by EPA with regard to the Lower Passaic River Study Area. EPA seeks to file a proof of claim for unreimbursed past response costs (which exceed $6 million), and costs to be incurred at the Diamond Alkali Site, Lower Passaic River Study Area. Because EPA has not yet completed the remedial investigation and feasibility study of the Lower Passaic River Study Area, it is not currently able to estimate the future response costs.
The United States reached a proposed settlement with Marcal Paper Mills, Inc., but Marcal failed to emerge from bankruptcy and the settlement never became final. Instead, two new entities, Marcal Paper Mills, LLC and a subsidiary Marcal Manufacturing, LLC, are taking over the operations of Marcal Paper Mills, Inc. and have entered into a settlement.