United Site Services Files for Chapter 11 to Erase $2.4B in Debt

WESTBOROUGH, Mass. – December 29, 2025 – United Site Services (USS), the largest provider of portable sanitation solutions in the United States, announced today that it has voluntarily filed for Chapter 11 bankruptcy protection. The move is part of a pre-packaged restructuring agreement with its key lenders designed to eliminate approximately $2.4 billion in debt and inject over a billion dollars in new capital, fundamentally reshaping the company's financial foundation while ensuring its vast operations continue without interruption.

The filing, submitted in the U.S. Bankruptcy Court for the District of New Jersey, is not a sign of operational collapse but rather a strategic financial maneuver. Supported by over 75% of its eligible creditors, the Restructuring Support Agreement (RSA) aims for a swift and efficient emergence from bankruptcy, positioning the company for long-term stability.

A Calculated Financial Overhaul

Unlike many protracted bankruptcy cases, USS's path through Chapter 11 is designed to be a rapid financial reset. The company entered the process with a pre-negotiated plan, a strategy that dramatically shortens the court-supervised timeline and minimizes uncertainty for employees, customers, and suppliers. As part of the proceedings, the company immediately filed a series of "first day" motions to ensure business as usual.

These motions seek court approval to continue paying employee wages and benefits without interruption and to honor all commitments to vendors and landlords in full under normal terms. This provision is critical for a company with over 140 locations coast-to-coast that relies on a complex supply chain and a dedicated workforce to service construction sites, outdoor events, and emergency response efforts.

"We've been transforming how site services are performed by setting best practice standards for over 25 years—this milestone ensures we continue leading the industry for the long run," said Bobby Creason, Chief Executive Officer of United Site Services. "This process will strengthen our foundation: reducing our net debt, providing a significant amount of new capital to invest in our people and operations, and giving our Company the financial flexibility to lead from strength. Going forward, our Company will be bolstered by $1.1 billion in new capital, including $480 million of equity committed by our existing financial stakeholders, demonstrating their continued support of our business and its long-term success."

To fund its operations during the restructuring, USS has secured $120 million in debtor-in-possession (DIP) financing from a group of its existing lenders, ensuring liquidity remains strong throughout the court process.

Deconstructing the Debt and New Capital

The financial pressure leading to this moment was immense. Court filings reveal the company's debt had become "untenable," with leverage soaring to approximately 18 times its earnings amidst a challenging economic environment. The restructuring directly confronts this issue by targeting a reduction of its funded debt from roughly $2.8 billion to a more manageable level. This dramatic deleveraging will primarily be accomplished by converting a significant portion of its "second-out" term loans into equity in the reorganized company.

This filing comes less than two years after a previous recapitalization effort in late 2024, which extended debt maturities and was intended to provide financial runway. However, persistent macroeconomic headwinds, including rising interest rates, fuel, and labor costs, coupled with a notable downturn in construction activity, rendered that solution insufficient.

The new financial structure, as outlined in the RSA, is comprehensive. It includes a $480 million equity rights offering backstopped by the supporting lenders, a new $300 million term loan, a $195 million five-year asset-based lending (ABL) facility, and a separate $100 million five-year revolving credit facility. This combination of reduced debt and fresh capital is designed to provide the financial resilience the company needs to navigate future market cycles and invest in growth.

The New Ownership and Stakeholder Landscape

The restructuring will trigger a significant shift in ownership and has major implications for its current and former financial backers. Upon emergence from Chapter 11, the private equity firm Platinum Equity, which acquired USS in 2021, will see its ownership stake completely wiped out. The company will instead be majority-owned by the Ad Hoc Lender Group, a collection of investment firms that held its debt and are now orchestrating its revival.

This group, which includes prominent names in distressed debt and private equity such as Clearlake Capital, Searchlight Capital Partners, Oaktree Capital, and Apollo Global Management, is not only providing the DIP financing but is also backstopping the crucial $480 million equity infusion. Their willingness to convert debt to equity and inject new money signals a deep belief in the underlying value and operational strength of the business.

However, the transition may not be without friction. While the plan has overwhelming support, reports indicate at least one major creditor has voiced opposition, raising the possibility of litigation that could challenge the company's goal of a timely emergence. The financial fallout also extends to other major Wall Street investors, including Fortress Investment Group, Ares Management Corp., and Blackstone, who are reportedly facing combined losses of $1.4 billion on an investment vehicle used in the 2021 acquisition.

Industry Impact and Market Stability

As the dominant force in the U.S. portable sanitation market, the stability of United Site Services has wide-reaching implications. The industry, valued at over $17 billion globally in 2023, is projected to grow significantly, driven by hygiene awareness and demand from its core sectors. The construction industry, which accounts for over 70% of USS's revenue, remains the primary driver of its business.

The company's financial struggles underscore the vulnerability of even market leaders to economic shifts, particularly downturns in construction and the impact of high interest rates on highly leveraged companies. Competitors such as Waste Management, National Construction Rentals, and Honey Bucket will be watching closely. By maintaining operational continuity, USS aims to prevent any significant disruption to service that could create chaos for its thousands of customers and open the door for competitors to poach market share.

The pre-packaged bankruptcy serves as a modern case study in corporate restructuring, demonstrating how a company can use the legal process to surgically repair its balance sheet without dismantling its operations. With a healthier financial structure, the reorganized United Site Services will be better positioned to compete in a market that is increasingly focused on innovation, from eco-friendly units to luxury restroom trailers, ensuring its critical services remain available for projects and events across the country.