Red River making progress in bankruptcy court

Local News

FORT WAYNE, Ind. (WANE) — Red River Waste Solutions bankruptcy proceedings made progress in Texas federal court Thursday. WANE 15 got the court documents for the hearing and they show an emergency motion about Red River’s contract with Fort Wayne is “resolved.”

We asked Fort Wayne City Spokesman John Perlich and Red River attorneys exactly what “resolved” means. The Red River attorneys didn’t respond to our email as of 11:30 pm Tuesday.

Perlich said today’s hearing was a status conference, but he didn’t specify exactly what the results mean for the city’s contract with Red River.

“The City’s legal team is encouraged by the progress being made and the dialogue as part of the bankruptcy proceedings. There will be an update for the public/media/City Council on Tuesday evening at City Council’s next meeting,” Perlich said in an emailed statement.

WANE 15 also reached out to Republican City Councilman Russ Jehl if he knows what the update from court Thursday means for the Red River contract. He said he wasn’t aware of it until WANE showed it to him, saying the city has been keeping council in the dark.

Jehl will hold a press conference Friday where he told WANE 1t he plans to call for the city to quote “level with the public.” He said he’ll also outline the steps he thinks the city should be doing now to prepare for a possible transition to another company if the Red River contract fails.

WANE 15 also showed the court documents to Corporate Attorney Apexa Patel to better understand what “resolved” could mean.

The hearing to ask a judge to make Red River choose to accept or reject its contract with Fort Wayne was originally requested by the surety, Argonaut Insurance Company. The surety is responsible for posting the bond as required in the contract at the beginning of the year. There has been no indication that the bond payment was made for 2022.

Patel said because Thursday’s hearing documents said it was “resolved by the parties,” it could mean that Red River and Argonaut reached an agreement on their own. Or, because Argonaut “passed” on the hearing that the court set, and there is no other pending motion, it’s assumed “resolved.”

Either way, it’s still not clear how the development affects Fort Wayne’s contract in the future, but Red River is still, and hasn’t stopped, collecting trash.

Again, Fort Wayne’s city attorneys will give an update on the status of the Red River trash contract at city council on Tuesday, which is open to the public. WANE 15 will also be there to provide complete coverage.

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