By Frank Lockwood

Staff writer

HERMISTON — Washington Group International has filed for bankruptcy protection, but the reorganization will not affect construction at Umatilla Chemical Weapons Disposal Facility, a company representative says.

The Department of Environmental Quality, however, wrote a May 15 letter expressing concerns and requesting proof that Washington Group will still be able to meet all the incineration project’s permit requirements.

The bankruptcy involves allegations of fraud stemming from Washington Group’s purchase of Raytheon’s construction projects about a year ago, a buyout in which Washington Group bought a number of projects that “drained” cash flow. The company presented bankruptcy courts with a plan that would shelter profitable projects under a new company while leaving so-called “bad” contracts in a separate company. (For the full story see the May 22, 2001 issue of the Hermiston Herald.)

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