Red River Waste Solutions gets final approval of $500,000 DIP loan

By Sarah Lizee

Olympia, Wash., Nov. 3 – Red River Waste Solutions, LP received final approval to access a $500,000 senior secured debtor-in-possession term loan facility from Weldon Smith, according to a minute entry filed Wednesday with the U.S. Bankruptcy Court for the Northern District of Texas.

The facility will mature in six months and bear interest at 6% per annum, with the default rate an incremental 4%, as previously reported.

The company also received interim access to the cash collateral of its pre-petition secured parties. The official committee of unsecured creditors has objected to certain terms of the cash collateral use, including the “overly generous” adequate protection package that includes liens on the debtor’s unencumbered collateral. A final hearing on the cash collateral use is scheduled for Nov. 22.

The Dripping Springs, Tex.-based waste management company filed bankruptcy on Oct. 14 under Chapter 11 case number 21-42423.

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