Debt-laden Carlyle portfolio company Synagro files for bankruptcy protection


recycle recycling waste green environment energyCarlyle’s debt-ridden portfolio company Synagro Technologies is planning to file for Chapter 11 bankruptcy protection to restructure its borrowing according to Reuters.

The firm bought into Synagro, the largest organic waste recycler in the US, for $772m in 2007, loading it up with significant debt in the process.

Like many other large buyout deals that strategy came undone following the global financial crash a year later, specifically when environmental projects and municipal water treatment spending were cut by public bodies.

Earlier this year Carlyle hired Evercore Partners to explore sale options for Synagro, which was the firm’s first infrastructure fund investment.

That process has been unsuccessful so far, Reuters said, adding that Synagro had defaulted on its debt earlier this month.

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