Red River Waste agrees to pay $75,000 breakup fee to SummitBridge

By Sarah Lizee

Olympia, Wash., March 7 – Red River Waste Solutions, LP has agreed to pay a $75,000 breakup fee to SummitBridge National Investments VIII LLC, according to a stipulation filed Friday with the U.S. Bankruptcy Court for the Northern District of Texas.

As previously reported, the company’s motion seeking court approval to enter into $2.25 million of alternative debtor-in-possession financing from Euclid Investments Funding I LLC drew an objection from SummitBridge.

Red River Waste had previously sought approval to enter into a $2.8 million DIP term loan facility from SummitBridge but later filed a motion seeking to replace the SummitBridge financing with the alternative financing from Euclid.

SummitBridge said the court had approved a $100,000 breakup fee in the event alternative DIP financing is approved before SummitBridge’s financing is approved. The company and official committee of unsecured creditors disputed that SummitBridge is entitled to the fee.

According to Friday’s stipulation, Red River Waste will pay a breakup fee of $75,000 within five days of entry into an order approving the stipulation.

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

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