Red River Waste corrects amended disclosure statement, plan for hearing

Chicago, Sept. 7 – Red River Waste Solutions, LP, in preparation for its Wednesday hearing, withdrew and resubmitted a corrected 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. It was said in the withdrawn filing that Weldon DIP financing claims had been paid in full, but they will be paid out of funds, if any, distributed to equity pursuant to the global settlement.

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

• Holders of other priority claims will receive payment in full in cash after all allowed administrative expense claims are paid;

• Union Bank’s claims of $31,105,474 are impaired and it will receive $5 million, consisting of $3.85 million which has been paid and another $1.15 million payment;

• Holders of Comerica Bank secured claims will have all of their claims recovered, but the status is an impaired class;

• Holders of Signature, Santander and TBK Bank claims received the collateral for their claims;

• Holders of Northpoint, Caterpillar, John Deere, Santander, TBK Bank and TCF Vfsus claims are listed as impaired; however, these creditors have received payment of their claims pursuant to the sale order;

• Fort Wayne and Argonaut claims were paid pursuant to the Fort Wayne settlement, impaired classes;

• Holders of general unsecured claims will receive pro rata distributions liquidation trust interests;

• Val Verde County claims were paid pursuant to the sale order;

• VFS leasing claims and Bank of the West were paid pursuant to the sale order and received the collateral for their claims;

• Nashville secured claims will be paid in full based on a Nashville settlement; and

• Sumitomo secured claims have received collateral.

All classes except preferred interests and common interests are entitled to vote on the plan. 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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