Red River Waste Solutions files bankruptcy, cites Covid-19, leverage

By Sarah Lizee

Olympia, Wash., Oct. 15 – Red River Waste Solutions, LP filed Chapter 11 bankruptcy late Thursday in the U.S. Bankruptcy Court for the Northern District of Texas.

Losses sustained by the debtor as a result of the impact of the Covid-19 pandemic, combined with a high degree of leverage, caused a significant deterioration of the company’s financial condition and led to the Chapter 11 filing, James Calandra, proposed chief restructuring officer of Red River, said in a declaration.

Red River is seeking court approval to enter into a $500,000 senior secured debtor-in-possession term loan facility from Weldon Smith. The financing will provide funds to reorganize the debtor, the motion said.

The facility will mature in six months and bear interest at 6% per annum, with the default rate an incremental 4%.

The company is also seeking court approval to access the cash collateral of its pre-petition secured lenders, MUFG Union Bank, NA and Comerica Inc.

The company listed $10 million to $50 million in assets and $50 million to $100 million in liabilities.

No creditors were listed with unsecured claims of $1 million or more.

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

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