FORT WAYNE, Ind. (WANE) – A hearing related to Red River Waste Solutions’ bankruptcy filing has been postponed. It was originally scheduled to take place on December 20, but court documents now show it is scheduled for the morning of December 23.
Red River filed for Chapter 11 bankruptcy in October, in part, citing the pandemic for causing an increase in missed collections as it was unable to hire more employees to cope with the increased waste from more people staying at home.
Last week, a Fort Wayne city attorney told the Solid Waste Advisory Board that in court papers, Red River said Fort Wayne was a “losing contract” and that Red River was “losing more money.” than he won”.
As part of its bankruptcy reorganization, Red River can choose to keep or reject its contract with Fort Wayne. The postponed hearing was requested by Argonaut Insurance Company, which is the bonding company for Red River’s contract with Fort Wayne. A surety company provides a bond to guarantee that, in this event, Red River would meet the requirements of its contract with Fort Wayne.
“This is an emergency request from this third party, the third party is the surety”, Corporate Lawyer Apexa Patel, noted. “So they’re saying they want the court to shorten the time Red River has to either assume the contract or reject it.” And the reason is the longer the Red River takes [to decide], the longer the time that fines can be imposed and they, theoretically the surety, would be liable. It was therefore the surety company that requested the emergency hearing.
In other court documents filed Monday in federal bankruptcy court in Texas, Red River appointed Stretto, Inc. as claims agent and notifier. According to its website, Stretto is a company specializing in the management of corporate restructurings and bankruptcies.
Watch Patel for more on Red River’s contract with Fort Wayne and the rest of the legal process throughout this week on WANE 15.