Synagro Technologies Inc., the biosolids-management company that filed for bankruptcy yesterday, received court approval to borrow as much as $15 million in interim financing, allowing the company to operate while it pursues a sale.
U.S. Bankruptcy Judge Brendan L. Shannon approved the financing today in Wilmington, Delaware. The company is to return to court May 24 to seek approval of the rest of a $30 million loan from existing lenders.
Synagro sought bankruptcy protection with a plan to sell most of its assets to the private-equity firm EQT Infrastructure II LP. EQT, based in Sweden, agreed to be the lead bidder at a court-supervised auction with an offer of about $455 million. The bid may be topped, and any sale requires court approval.
The Baltimore-based company listed assets of more than $10 million and debt of more than $100 million in Chapter 11 papers. Affiliates ST Interco Inc. and Synagro-WWT Inc., which also sought protection yesterday, listed assets of more than $100 million against debt of more than $500 million.
The company serves more than 600 municipal and industrial water and wastewater facilities and is the largest recycler of organic byproducts in the U.S., it said today in a statement. Synagro processes waste to produce environmentally friendly products including fertilizer. The company was founded in 1986, and has 800 employees in 34 states from Connecticut to California, according to its website.
Washington-based Carlyle Group LP, the world’s second-biggest private-equity firm by assets, acquired Synagro in 2007 for $462 million plus the assumption of $310 million in debt.
The case is In re Synagro Technologies Inc., 13-bk-11041, U.S. Bankruptcy Court, District of Delaware (Wilmington).