US Post Petition: Porta-potty provider United Site Services looks to flush away $2.4bn in debt; CastleKnight will challenge 2024 ‘double dip’ – Case Intro
Scott Flaherty - Senior Reporter, LevFin Insights
2 January 2026
Insights into United Site Services Chapter 11: Porta-Potty Provider’s $2.4bn Debt Restructuring, including:
- Pre-arranged bankruptcy eliminates $2.4 billion debt obligation: USS files Chapter 11 with restructuring support agreement backed by ad hoc lender group.
- CastleKnight challenges 2024 double-dip transaction structure: Consequently, holdout lender objects to additional guarantees provided to recapitalization participants in July deal.
- Ad hoc crossover group controls restructuring outcome: Six lenders holding $1.9 billion commit new financing and backstop $480 million equity rights offering.
- Aggressive confirmation timeline targets February 2026 completion: However, Judge Kaplan schedules final DIP hearing before combined disclosure statement and plan confirmation hearing.
- Construction sector downturn drove financial distress: Inflation, reduced urban construction activity, and margin erosion necessitated 2024 recapitalization and subsequent bankruptcy filing.
Executive Summary
United Site Services filed Chapter 11 bankruptcy on December 29 to eliminate $2.4 billion in funded debt obligations. The Massachusetts-based company is America’s largest portable sanitation provider with 350,000 units serving 70,000 customers nationwide.
Platinum Equity-backed USS encountered severe financial distress following 2022 inflation impacts and declining urban construction activity. Construction sector customers generate approximately 70 percent of company revenue, making economic downturns particularly challenging for operations.
A pre-arranged restructuring plan backed by an ad hoc crossover lender group provides $300 million new debt financing. Consequently, the plan calls for $480 million equity rights offering fully backstopped by six major lenders holding $1.9 billion.
CastleKnight Master Fund opposes the bankruptcy filing and intends to challenge the 2024 recapitalization transaction structure. The holdout lender holds $377 million in secured and unsecured debt but declined participating in restructuring negotiations.
Judge Michael Kaplan approved interim debtor-in-possession financing and scheduled final confirmation hearing for February 10, 2026. However, CastleKnight’s litigation strategy may complicate USS’s aggressive timeline for completing the pre-arranged bankruptcy plan.
Fill out the below form to view the full article:
Please note that we can only respond to valid business email addresses and the interview is already available to clients.
Recently Published
Research
