Red River Waste bankruptcy sale moves closer to finalization

Dive Brief:

Final details of the proposed $12.6 million sale of Texas-based Red River Waste Solutions to private equity firm Platform Capital could come in the next few weeks. The two parties and numerous creditors are aiming to resolve any lingering disagreements over the terms of the final sale order during a July 13 bankruptcy hearing.
Presiding Judge Edward Morris urged involved parties to “move fast and furious” to talk through discrepancies to avoid further delays and continuations. Once the sale order is finalized, the parties plan to wrap up other important details, such as approving Red River’s bankruptcy disclosure statement, in an additional hearing on July 21.
During a hearing on Friday in federal bankruptcy court, most creditors verbally agreed with the details laid out in the sale order. Several municipalities, equipment vendors and financial institutions are part of the ongoing bankruptcy and sale process.

Dive Insight:

The lengthy Red River bankruptcy case has had numerous “moving parts,” said Marcus Helt, the company’s attorney, during the hearing. The sale has been partly bogged down by numerous conversations over which assets are eligible to be part of its sale to Platform Capital and under what terms. Red River’s sale has attracted no other bidders beyond Platform’s stalking horse bid.

During the July 8 hearing, a representative from vehicle financing companies Daimler Trust and Santander Consumer USA expressed concern about not knowing whether vehicles the companies leased to Red River were being used, maintained or insured, but overall were satisfied with the portions of the sale order that pertained to the companies’ equipment.

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

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

Few larger waste companies have filed for bankruptcy in recent years, but Red River cited the pandemic, rising costs and lower waste volumes among the factors leading to its filing. It has been unable to provide consistent service to several local governments recently, with Fort Wayne, Indiana, recently terminating its contract in favor of beginning an eight-year contract with GFL Environmental in July.