Red River leaders failed to show up to city council despite their request
FORT WAYNE, Ind. (Fort Wayne’s NBC) - Just days after the city’s trash collection company, Red River Solutions, filed for bankruptcy they failed to appear before council despite their request.
Red River Waste Solutions, LP made the filing with the U.S. Bankruptcy Court in the Northern District of Texas Thursday blaming the COVID-19 pandemic for the company’s financial downturn.
In the filing, the company lists three options they will pursue in bankruptcy, which included a plan to restructure or downsize their company, seek outside financing or sell the business in two parts.
Fort Wayne City Council members requested leaders with the company and legal counsel sit before them Tuesday night.
Timothy Haffner and Jay Jaffe are looking out for the city’s legal interest in the case and they showed up, but Red River Solutions leaders did not.
Jaffe says they had a scheduling conflict.
“When they said they couldn’t come tonight, we said well you’ll have multiple indications again,” Jaffe said. “We encouraged them to make themselves available in the future.”
Councilwoman Sharon Tucker questioned, “It’s interesting that their schedule is so busy, we invited them to the board as well and they said the same thing. Their schedule was busy.”
Tucker also questioned Solid Waste Manager Matt Gratz is there were signs the bankruptcy protection filing was imminent.
Tucker said, “Matt, you knew nothing about them being in trouble?”
“No, I did not,” Gratz said.
Haffner says they believe Red River has strong legal representation to help fix the problem.
“Our hope is that this could be a measured, thoughtful, deliberate process to bring about the right conclusion for best service for the city of Fort Wayne,” Haffner said. “Our indication is that they are committed to that.”
Council members say they want the city to plan ahead and talk to other contractors just in case Red River Solutions isn’t able to make it out of this problem.
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