Red River Waste Solutions lender objects to sale of its collateral

By Sarah Lizee

Olympia, Wash., June 13 – Red River Waste Solutions, LP’s proposed asset sale drew an objection Sunday afternoon from lender MUFG Union Bank, NA, according to court documents filed with the U.S. Bankruptcy Court for the Northern District of Texas.

The lender said the sale of its collateral free and clear of its liens and interests without its consent is impermissible under bankruptcy code.

The collateral includes accounts receivable in an estimated amount of $4.2 million; settlement proceeds related to a transition agreement between the debtor and Fort Wayne, Ind., which the lender estimates will total about $1.8 million; some property, plant and equipment; and some municipal waste removal contracts.

As previously reported, the company canceled an auction for the assets after receiving no qualified bids. As such, stalking horse Platform Waste Solutions, LLC was designated the winning bidder.

The purchase price under the stalking horse agreement is $12.6 million.

A sale hearing is scheduled for June 17.

The Dripping Springs, Tex.-based waste management company filed bankruptcy on Oct. 14, 2021 under Chapter 11 case number 21-42423.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.