Red River Waste Solutions’ Chapter 11 plan effective as of Sept. 30

By Sarah Lizee

Olympia, Wash., Oct. 4 – Red River Waste Solutions, LP’s Chapter 11 plan went into effect on Friday, according to a notice filed Tuesday with the U.S. Bankruptcy Court for the Northern District of Texas.

As previously reported, Red River sold all of its assets to Platform Waste Solutions, LLC on Aug. 10.

The plan, which was also confirmed on Friday, intends to implement a global settlement and pursue litigation, distribute the sale proceeds, and wind down the estate.

During the case, Union Bank, Red River, the official committee of unsecured creditors and equity holders have been involved in litigation related to various disputes. In order to avoid expense and delay of continued litigation, the parties entered into the global settlement.

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. Weldon DIP financing claims will be paid out of funds, if any, distributed to equity under the global settlement.

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.

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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