Synagro secures covenant waivers, buys more time to restructure debt

By Susanna Moon

Chicago, Dec. 7 - Synagro Technologies, Inc. said its lenders agreed to waive some breaches of the company's credit agreement to allow more time to restructure its debt and bolster its balance sheet.

Synagro is "working diligently on the restructuring process," according to Eric Zimmer, the company's president and chief executive officer, in a press release.

The company said on Nov. 14 that it was in talks with lenders to address covenants under its senior credit facility.

The parties were discussing the terms of a waiver for the third quarter of 2012 and prior periods to provide relief from the covenants as part of ongoing efforts to restructure the company's debt profile, according to a previous news release.

Synagro previously said it would like the waiver to also address potential defaults in the fourth quarter, and it is asking lenders to forbear from exercising default-related remedies from the breach of the company's required leverage ratio test and other provisions in the credit agreement during these negotiations.

Synagro Technologies is a Houston-based recycler of biosolids and other organic residuals.

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