Red River Waste amends bid procedures for sale of assets

Chicago, April 29 – Red River Waste Solutions, LP amended the bid procedures for the sale of its assets and modified the agreement with it stalking horse bidder, Platform Waste Solutions, LLC, according to a filing with the U.S. Bankruptcy Court for the Northern District of Texas on Friday.

Platform Waste owes $1.26 million as a cash deposit for its bid, due by May 6.

The company will not be formally recognized as the stalking horse bidder until the deposit is received.

A paragraph was added about a plan toggle notice, whereby the debtor can terminate the sale process and change course to pursue a Chapter 11 plan of reorganization or liquidation. The deadline to select this option was added as 6 p.m. ET on May 19.

Previously, an auction would only be held if there were two or more bids. That has been changed to one or more qualified bids.

The purchase price under the stalking horse agreement is $12.6 million.

Bid protections under the stalking horse agreement include a $390,000 breakup fee and an increased $350,000 expense reimbursement if the company files a plan toggle notice. Otherwise, the breakup fee is $100,000.

The revised timeline has May 25 as the auction date, June 3 as the allocation deadline and June 6 for the 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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