Red River Waste creditors committee objects to cash collateral terms

By Sarah Lizee

Olympia, Wash., Nov. 2 – Red River Waste Solutions, LP’s official committee of unsecured creditors objected to the company’s motion for access to cash collateral, according to a Tuesday filing with the U.S. Bankruptcy Court for the Northern District of Texas.

The committee said that while it is readily apparent that the debtor needs access to its cash, its unclear why the pre-petition secured parties should be given an “overly generous” adequate protection package that includes liens on the debtor’s unencumbered collateral.

“The pre-petition secured parties are not providing the debtor with any post-petition financing, nor have they agreed to fund the costs of administration of this Chapter 11 case through the provision of a carve-out,” the committee said in its objection.

The committee added that there is at least one non-debtor guarantor that may be on the hook to pay some or all of the obligations to the pre-petition secured parties.

“The wide-sweeping relief that the pre-petition secured parties have insisted upon is both premature and unwarranted as this stage,” the committee said.

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

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