Synagro Gains Court Approval of Interim Financing Agreement; Obtains Additional Key Relief to Continue Normal Operations
BALTIMORE, April 26, 2013 /PRNewswire/ -- Synagro Technologies, Inc. today announced that it has obtained U.S. Court approval of a variety of motions that will support the Company's operations as it proceeds with a financial restructuring and proposed sale; including approval of an interim financing agreement.
The financing, along with cash flow from operations, will be used to support the Company's operations through the sale process and ensure Synagro can continue to provide critical service and support to its more than 600 customers across the country. The Court today granted the Company authority to access up to $15 million on an interim basis. A hearing to consider final approval of the full $30 million agreement, provided by a group of the Company's existing lenders, is scheduled on May 24.
"The relief granted today keeps us on track with our goal – to make Synagro a better, stronger Company positioned to remain the clear market leader as the largest recycler of organic by-products in the country," said Eric Zimmer, the Company's President and CEO. "Our restructuring is off to a good start. Our employees, customers, and business partners are supportive of our plan and look forward to a successful conclusion of the sale and restructuring process."
All Synagro facilities continue to operate as normal and meet all customer needs.
In addition to the authority to obtain financing, the Company won approval of a variety of motions, including requests to continue paying employees without interruption, to pay amounts owed to sub-contracted haulers for services provided prior to the Chapter 11 filing, and to continue ongoing capital projects. Additionally, the Court scheduled a hearing to consider approval of certain aspects of the Company's sale process on May 13. The sale is expected to be closed in 60 to 90 days.
As previously reported, EQT Infrastructure II, the second fund within the infrastructure investment strategy of EQT, has agreed to purchase the Company in a transaction valued at $455 million. The sale is the proposed culmination of a plan to strengthen Synagro's balance sheet and position the Company for strategic growth.
Synagro is being advised by the law firm of Skadden Arps Slate Meagher & Flom, along with financial adviser AlixPartners and investment bankers Evercore Partners.
For more information about today's announcement, please visit www.SYNAGRO.com/restructuring.
Founded in 1986, Synagro provides a system of solutions for civic and commercial organizations that manages by-products to create new, environmentally compelling options. The Company's reliable, lasting system transforms industrial and municipal waste into environmentally sustainable resources that benefit our communities and our planet—before an environmental footprint is left behind. As the largest recycler of organic by-products in the United States, Synagro uses best-in-class processes from beneficial reuse to renewable energy that adhere to the strictest of environmental regulations to provide sustainable solutions for communities across the nation. Serving more than 600 municipal and industrial water and wastewater facilities throughout the U.S., the Company's leading systems of by-product management services help municipalities of all sizes save money and meet environmental regulations.
SOURCE Synagro Technologies, Inc.