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Red River Waste receives approval for bid procedures to sell assets
Chicago, May 3 – Red River Waste Solutions, LP was granted approval for the bid procedures for the sale of its assets on Tuesday, according to a filing with the U.S. Bankruptcy Court for the Northern District of Texas.
Platform Waste Solutions, LLC has been designated the stalking horse bidder.
The purchase price under the stalking horse agreement is $12.6 million.
Bid protections under the stalking horse agreement include a $390,000 breakup fee and a $250,000 expense reimbursement.
Platform Waste owes $1.26 million as a cash deposit for its bid, due by May 6.
The company will not be formally recognized as the stalking horse bidder until the deposit is received.
The minimum overbid increment is $75,000 if an entity is bidding on all of the assets or $5,000 for an individual asset.
This puts the minimum bid at $13.315 million with the stalking horse bid plus the minimum overbid and the bid protections in the amount of $390,000 and $250,000.
A paragraph was recently added about a plan toggle notice, whereby the debtor can terminate the sale process and change course to pursue a Chapter 11 plan of reorganization or liquidation. The deadline to select this option is 6 p.m. ET on May 19.
An auction will be held if there is one or more qualified bids.
The bid deadline is May 18.
May 25 is the auction date, June 3 is the allocation deadline and June 6 is set for the sale hearing.
The company filed an amended statement of its assets and liabilities on Tuesday.
It lists its liabilities at $40.56 million and its assets at $25.08 million, inclusive of $19.85 million in machinery, equipment and vehicles.
The Dripping Springs, Tex.-based waste management company filed bankruptcy on Oct. 14 under Chapter 11 case number 21-42423.
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