Red River Waste amends disclosure statement, plan for hearing

Chicago, Sept. 6 – Red River Waste Solutions, LP, in preparation for its Wednesday hearing, submitted a third amended Chapter 11 plan and disclosure statement, according to multiple filings with the U.S. Bankruptcy Court for the Northern District of Texas.

The debtor, as of Aug. 10, has already sold substantially all of its assets to Platform Waste Solutions, LLC.

The purpose of the plan is now to distribute the remaining sale proceeds.

During the case, Union Bank has been in contentious litigation with the debtor, but mediated those disputes and then agreed to a resolution. The resolution needs to be modified post-Platform sale.

The global settlement sets up a modified liquidation trust waterfall for the Union Bank effective date settlement payment, the debtor professionals’ initial payment, committee professionals’ initial payment and the allowed general administrative expense claims.

Some claims have already been paid in full from the sale, including Euclid DIP financing claims and Weldon DIP financing claims.

In the amended plan, creditors will receive the following treatment:

• Holders of other priority claims will receive payment in full in cash;

• Union Bank’s claims of $31,105,474 are currently unknown regarding anticipated recovery;

• Holders of Comerica Bank secured claims will have an all of their claims recovered;

• Holders of Signature, Northpoint, Caterpillar, John Deere, Santander, TBK Bank, TCF Vfsus are listed as an anticipated recovery of all of their secured claims; however, these creditors have received payment of their claims pursuant to the sale order or return of their collateral;

• Fort Wayne and Argonaut claims are also listed as full recovery, via payment of their claims pursuant to the sale order or return of their collateral;

• Holders of general unsecured claims will receive pro rata distributions from creditor trust assets and Union Bank sale proceeds;

• Val Verde County claims, VFS leasing claims and Bank of the West secured claims have been made whole;

• Nashville secured claims will have full recovery; and

• Sumitomo secured claims have been recovered.

Only classes 1 and 23 are impaired under the plan and entitled to vote on it. Votes are due by Sept. 26, as currently proposed.

A hearing is scheduled for Sept. 7 for conditional approval of the disclosure statement. Red River is proposing a confirmation hearing for Sept. 28.

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

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