FORT WAYNE, Ind. (WANE) – A hearing related to the Red River Waste Solutions bankruptcy filing was postponed. It was originally scheduled to be December 20, but court documents now show it scheduled for the morning of December 23.
Red River filed for Chapter 11 bankruptcy in October, in part, citing the pandemic for causing increases in missed collections because it wasn’t able to hire more employees to keep up with increased trash from more people staying home.
Last week an attorney for the city of Fort Wayne told the Solid Waste Advisory Board that in court documents, Red River said Fort Wayne is a “losing contract” and that Red River is “losing more money than they are making.”
As part of its bankruptcy reorganization, Red River can choose to keep or reject its contract with Fort Wayne. The rescheduled hearing was requested by Argonaut Insurance Company, which is the surety company for Red River’s contract with Fort Wayne. A surety company provides a bond to guarantee that, in this case, Red River would perform as required in its contract with Fort Wayne.
“This is an emergency motion from this third party, the third party is the surety,” Corporate Attorney Apexa Patel, said. “So, they’re saying they want the court to shorten the time that Red River would have to either assume the contract or reject the contract. And the reason is the longer Red River takes [to decide], the longer time that fines can be assessed and they, theoretically the surety, would be on the hook for it. So, it’s the surety company that requested the emergency hearing.”
In other court documents filed in federal bankruptcy court in Texas on Monday, Red River named Stretto, Inc. as its claims and noticing agent. According to its website, Stretto is a company that specializes in managing corporate restructuring and bankruptcies.
Watch for more from Patel about Red River’s contract with Fort Wayne and what’s next in the legal process throughout this week on WANE 15.