On Thursday, February 6, Watson Grinding and Manufacturing, a Houston-based business, has filed a petition with the court for protection under Chapter 11 bankruptcy.
According to the company, they are filing the petition with the United States Bankruptcy Court of the Southern District of Texas for a voluntary Chapter 11 reorganization. They also stated that they were forced to terminate all their workforce, which equaled about 80 employees.
Have you or a loved one been involved in an accident? Speak to a lawyer for a free no obligation consultation
Or call us at (888) 699-7975
They hope that once the filing is approved by the court it will allow for them to continue business operations and service to the customers while it works through a reorganization plan.
This bankruptcy filing comes after several lawsuits were filed after the explosion. Homes in the area were severely impacted and two employees of the company were killed during the explosion. They are also facing a lawsuit from Harris County for violation of the county’s Clean Air Act.
The explosion of Watson Grinding and Manufacturing occurred in the early hours of January 24, 2020. Two employees had come into work early to utilize the employee gym when they were killed in an explosion. The employees killed in the blast were Frank Flores and Gerardo Castorena Sr.The explosion was enough to damage several homes within the radius of a few miles.
The cause of the explosion is believed to have been the leaking propylene tank that was on the premises.
The family of Frank Flores has filed a wrongful death lawsuit against the company. Another employee has also filed a lawsuit stating that they were “thrown around like a ragdoll” due to the explosion.
There are also several open lawsuits against the company for the repairs of the homes in the area that were damaged by the explosion.
Last month, the CEO of Watson Grinding and Manufacturing had released a statement saying that they intended to repair all of the homes that have been damaged in the blast, only to back-track and state that the reality of that goal would be harder to reach.