Synagro to file Chapter 11 plan in conjunction with asset sale to EQT

By Jim Witters

Wilmington, Del., June 20 - Synagro Technologies, Inc. intends to file a Chapter 11 plan and disclosure statement within the coming week and pursue plan confirmation in conjunction with the closing of the $465 million sale of the company's assets to EQT Infrastructure II, the debtor's attorney told the court.

During a June 20 status conference in the U.S. Bankruptcy Court for the District of Delaware, George N. Panagakis said he expects a "highly consensual and relatively quick process."

The lone obstacle involves tax issues under negotiation with the Internal Revenue Service and the U.S. Department of Justice, Panagakis said.

The bankruptcy case was filed to allow Synagro to deleverage its balance sheet and sell substantially all of its assets to EQT.

A hearing for approval of the EQT purchase was postponed to June 27 to allow the parties time to transform the asset purchase agreement into a plan support document.

Judge Brendan L. Shannon scheduled a July 18 hearing for approval of the disclosure statement and an Aug. 20 plan confirmation hearing.

Synagro Technologies, a Houston-based recycler of biosolids and other organic residuals, filed for bankruptcy on April 24. The Chapter 11 case number is 13-11041.

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