Red River Waste gets approval of amended bid procedures for assets

By Sarah Lizee

Olympia, Wash., April 14 – Red River Waste Solutions, LP received court approval of modified bid procedures for substantially all its assets, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Northern District of Texas.

As previously reported, the company had asked to move the hearing on the bid procedures, as well as some of the deadlines under the bid procedures, as the company was still finalizing an asset purchase agreement and resolve objections.

Lender and administrative agent MUFG Union Bank, NA had objected to the bid procedures and a proposed $13.32 million stalking horse agreement with Platform Capital, LLC. The lender had said that to date, the debtor has done little to market the assets and has only engaged in inbound interest. The official committee of unsecured creditors also filed a limited objection.

Proposed bid protections under the stalking horse agreement include a $390,000 breakup fee and a $250,000 expense reimbursement.

The court will hold a hearing on approval of the stalking horse agreement on April 19.

The revised bid procedures reflect a new sale timeline, including a bid deadline of 6 p.m. ET on May 18, a May 25 auction, if needed, and a June 6 sale hearing.

The minimum overbid increment has been set at $75,000.

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

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