Closing Administrative Penalties in ICIS where the company files Bankruptcy
For enforcement actions that have already been concluded with a Penalty, but subsequently the company has filed for Bankruptcy, here is what is needed for addressing and closing the Administrative actions. The Regional office will have an option to pursue debt collection through a formal Bankruptcy proceeding or not to pursue. The steps for each are listed below.
1) Option 1 - EPA will not pursue.
Even though companies owe penalty amounts to EPA, we can elect to not pursue a Judicial Bankruptcy proceeding. It may also be that we missed our window of opportunity to file with the court for debt collection as a creditor, in which case we can not pursue. If it is decided that EPA will not pursue, then the Administrative Penalty actions will be closed out in the following manner:
A. A Resolution Type of "Final Order with Penalty" will be used. This is found in the Milestone screen.
B. Use the Financial Data Warehouse "written off" date (or the date EPA decides not to pursue) as the case closed date
C. The field Total Penalty Collected will be $0 (or whatever amount has actually been collected from the company up to the time of Bankruptcy filing)
D. And comments will be added to the Case Summary explaining the situation in detail.
2) Option 2 - Proceed with formal Judicial process
If EPA is still within the window of opportunity to do so, EPA may proceed with a formal Judicial Bankruptcy proceeding. If it is decided that this will be your course of action, then a Formal Judicial Bankruptcy enforcement action is drafted and issued as usual. With regards to the Administrative Penalty actions, they will be closed out in the following manner:
A. In the Milestone screen, a Resolution Type of "Combined With Another Case(s)" will be used. The Judicial EA ID will need to be provided in the field below the Resolution Type.
B. The EA closed date will be the same as the Judicial Bankruptcy Referred to DOJ date
C. And comments are added to the Case Summary explaining the situation in detail.