Thursday, August 11 2022

Diving summary:

  • Final details of the proposal $12.6 million the sale of Texas-based Red River Waste Solutions to private equity firm Platform Capital could happen in the coming weeks. The two parties and numerous creditors aim to resolve any persistent disagreements over the terms of the final sale order during a July 13 bankruptcy hearing.
  • Presiding Judge Edward Morris urged the parties involved to “act fast and furious” to discuss the discrepancies to prevent further delays and continuance. Once the sale order is finalized, the parties plan to finalize other important details, such as the approval of the Red River contract. bankruptcy filing statement, at additional hearing on July 21.
  • During a hearing Friday in federal bankruptcy court, most creditors verbally agreed to the details laid out in the order of sale. Several municipalities, equipment suppliers and financial institutions are part of the ongoing bankruptcy and sale process.

Diving information:

Red River’s lengthy bankruptcy case has had numerous “moving parts,” Marcus Helt, the company’s attorney, said during the hearing. The sale has stalled in part. for numerous conversations about which assets are eligible to be part of your sale to Platform Capital and under what terms. The sale of Red River has did not attract other bidders beyond Platform’s stalking horse offering.

During the hearing on July 8, a representative of the vehicle financing companies Daimler Trust and Santander Consumer USA expressed concern that they did not know whether the companies’ vehicles leased from Red River were being used, maintained, or insured, but were generally satisfied with the portions of the sales order that belonged to the companies’ team.

Representatives from Signature Financial and TBK Bank said they still have disagreements over the wording of the final sale, but intended to resolve the concerns in the coming days.

Other creditors include the Nashville Metropolitan Government and Davidson County in Tennessee, the City of Huntsville Solid Waste Disposal Authority in Alabama and Santek Waste Services (a subsidiary of Republic Services).

Few large waste companies have gone bankrupt in recent years, but Red River aforementioned the pandemic, the increase in costs and the decrease in waste volumes among the factors that led to its presentation. It has been unable to provide consistent service to several local governments recently, with Fort Wayne, Indiana recently terminating its contract in favor of starting a eight year contract with GFL Environmental in July.

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