Ft. Wayne MarketLocal News

Red River bankruptcy ties City’s hands

(Darrin Wright/1190 WOWO 107.5 FM)

FORT WAYNE, Ind. (WOWO): There’s not much the City of Fort Wayne can do about its trash collection company now that they’ve filed for bankruptcy.

Red River Waste Solutions announced last week they had filed for Chapter 11 bankruptcy due to being $31-million in debt, but according to the Journal Gazette, legal counsel explained in an update to the Fort Wayne City Council last night that Red River is now in a “protected position.”

That means the federal bankruptcy protection takes precedence over their seven-year contract with the city, which started in 2017 and had a bumpy start thanks to thousands of missed collections.

The city can look at alternatives, but they won’t be able to hire anyone else without Red River being involved in the meantime.

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