Red River alternative DIP financing draws objection from SummitBridge

By Sarah Lizee

Olympia, Wash., Feb. 8 – Red River Waste Solutions, LP’s motion seeking court approval to enter into $2.25 million of alternative debtor-in-possession financing from Euclid Investments Funding I LLC drew an objection on Tuesday from SummitBridge National Investments VIII LLC, according to a filing with the U.S. Bankruptcy Court for the Northern District of Texas.

As previously reported, the company sought approval to enter into a $2.8 million DIP term loan facility from SummitBridge but later filed a motion seeking to replace the SummitBridge financing with the alternative financing from Euclid.

SummitBridge said the court had previously approved a $100,000 breakup fee in the event alternative DIP financing is approved before SummitBridge’s financing is approved.

The lender said that the company and official committee of unsecured creditors are now disputing that SummitBridge is entitled to the fee.

SummitBridge is also asking the court to award it additional legal fees and expenses.

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

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