| April 24
April 24 Carlyle Group LP's Synagro
Technologies Inc is preparing to file soon for Chapter 11
bankruptcy protection to restructure its debt, two sources with
knowledge of the situation told Reuters.
Synagro is the largest recycler of organic waste in the
United States and Carlyle's infrastructure fund borrowed heavily
to take it private in 2007 in a $772 million deal.
That deal left Synagro vulnerable when municipalities cut
spending on wastewater treatment and other environmental
projects in the aftermath of the 2008 financial crisis.
The company also lost two major contracts in New York City
and Detroit. Synagro's Detroit contract was mired in a bribery
scandal that weighed on the public image of the Houston,
Synagro and Carlyle did not immediately respond to a request
Carlyle brought in Evercore Partners earlier this year to
find buyers for Synagro, sources familiar with the matter told
Reuters in January. The effort to sell the company has so far
proved unsuccessful, one of the sources said on Wednesday.
Moody's said the company defaulted on its debt earlier this
month. It said Synagro had a $290 million first-lien term loan
due in April 2014 and a $150 million second-lien term loan due
in October 2014.
Synagro was founded in 1986 and employs 800 in 34 states,
according to its website.