Portable-Toilet Giant Files for Chapter 11 to Shed $2.4 Billion Debt

United Site Services, the largest provider of portable sanitation systems in the U.S., filed for Chapter 11 bankruptcy protection in New Jersey on Monday, aiming to erase $2.4 billion in debt and transfer ownership to its lenders. The company, backed by private equity firm Platinum Equity Partners, said most of its lenders support the restructuring, according to Reuters. However, one major creditor has opposed the plan, warning in court filings that it may challenge the proposal, which could slow the proceedings.

If approved, the restructuring would fully repay senior lenders and convert lower-ranking debt into equity, effectively ending Platinum’s ownership of the Westborough, Massachusetts–based company. United Site Services offers everything from basic single-stall units to air-conditioned restroom trailers, along with services such as cleaning and erecting temporary fencing. Its roughly 350,000 portable toilets appear at construction sites, music festivals, and high-profile events like the Super Bowl, and FEMA is among its customers. The company employs about 3,000 people and serves more than 70,000 clients nationwide.

The company told the court that years of acquisitions and expansion, funded by heavy borrowing, became unsustainable amid rising inflation, higher fuel and labor costs, and a slowdown in homebuilding that reduced revenue. To navigate bankruptcy, current lenders will provide a $120 million loan, while United Site Services plans a $480 million equity rights offering and a $300 million exit loan, targeting completion of the restructuring by February. The company said employees “will continue to receive their usual wages and benefits without interruption.” Bloomberg notes that the bankruptcy timeline still requires court approval.

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