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.