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© Steve Helber/APA leak from the Freedom Industries storage facility in Charleston contaminated water supplies for hundreds of thousands of residents.
The chemicals maker Freedom Industries Inc filed for Chapter 11 bankruptcy on Friday, eight days after a leak from one of the company's storage tanks contaminated drinking water for hundreds of thousands of West Virginia residents.

A chemical used to process coal spilled into the Elk River in Charleston last week, prompting the state's governor to declare a state of emergency and ban the use of drinking water. More than 200 people have visited emergency rooms with nausea.

As a result of the leak, vendors have demanded Freedom pay in cash, draining the company of financing and prompting it to seek bankruptcy, according to documents filed in the US bankruptcy court in Charleston, West Virginia.

"Likewise, the defence of the numerous suits filed against the debtor will exhaust the debtor's liquidity," Freedom said in a court filing. The bankruptcy filing will put a stay on more than 20 lawsuits filed against the company over the spill.

The company filed an emergency motion seeking court authority to borrow an initial $4m (£2.4m) from WV Funding LLC.

The company estimated it had up to $10m in both assets and liabilities, according to the filings.

Source: Reuters