Red River asks to move bid procedures hearing in light of objections

By Sarah Lizee

Olympia, Wash., March 23 – Red River Waste Solutions, LP asked the U.S. Bankruptcy Court for the Northern District of Texas to move the hearing on approval of the bid procedures for its assets to April 5 from March 24, according to a motion filed Wednesday.

The company said it is continuing to finalize an asset purchase agreement and resolve objections.

As previously reported, lender and administrative agent MUFG Union Bank, NA objected to the bid procedures and a proposed stalking horse agreement with Platform Capital, LLC.

The lender said that to date, the debtor has done little to market the assets and has only engaged in inbound interest.

“This is not a value-maximizing process,” the lender said in its objection. “Instead, this is a commitment to inaction that contains all the indicia of a private sale that actively discourages competitive bidding. Indeed, the debtor’s failure to run a marketing process harms all parties in interest and should not be rewarded.”

MUFG said the debtor should be required to run a transparent process with input from its largest creditors.

“Any order approving bidding procedures must require the debtor to run a professional, value-maximizing, organized marketing and auction process,” the lender said.

“Anything less will result in an irrevocable loss to the estate and all of the debtor’s creditors.”

The official committee of unsecured creditors has also filed a limited objection.

The purchase price under the stalking horse agreement is $13.32 million.

Bid protections under the stalking horse agreement include a $390,000 breakup fee and a $250,000 expense reimbursement.

The minimum overbid increment has been set at $75,000.

The revised bid procedures reflect a new sale timeline, including a bid deadline of 6 p.m. ET on May 5, a May 12 auction, if needed, and a May 25 sale hearing.

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

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