Even though the business is winding down, it will remain under Chapter 11 proceedings

CHARLESTON, W.Va. -- A few days after a bankruptcy hearing where Freedom Industries announced the company is winding down its business, the company is due back in court for a creditors' meeting.

This meeting, which is scheduled for 10 a.m. Tuesday, is the next step in Freedom Industries' bankruptcy proceedings.

Attorneys said company president Gary Southern and chief financial officer Terry Cline will testify in this hearing since they testified at the hearing on first-day motions.

Freedom Industries filed for Chapter 11 bankruptcy on Jan. 17, following the Jan. 9 discovery of crude MCHM leaking into the Elk River.

Lawsuits against the company are still on hold, but attorney Anthony Majestro said discussions about lifting the stay are ongoing.

"I think everyone recognizes that the course Freedom is on was inevitable following the Jan. 9 spill," he said following Friday's hearing. "The parties and the bankruptcy court are doing their best to balance competing interests in Freedom's resources."

In Friday's hearing, Freedom Industries' attorneys announced the company would scale back its business and may cease to exist at some point in the future.

Freedom's attorney Mark Freedlander said the company is culling its inventory, transitioning its customers to competitors and trying to transition employees to existing vendors or competitors.

Although the business is winding down, attorneys said the case is not converting to Chapter 7 bankruptcy, or straight liquidation, and will remain under Chapter 11 proceedings.

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Freedom executives due in court Tuesday for creditors meeting