United Site Services is considering options, including handing over the keys to certain lenders through a potential bankruptcy, according to 9fin sources.

The Platinum Equity-backed portable potty firm is in the midst of a forbearance after skipping coupon payments on some of its debt, sources said. Some first lien, second out lenders are looking to put together a DIP loan, they said.

USS is joining a throng of companies that are back on distressed radar less than a year after they closed liability management exercises not too long ago. As reported, USS re-hired advisors at Milbank and PJT Partners, while some lenders have re-grouped with Akin Gump.

The company is still grappling with weak performance and liquidity strains, and its material cash burn is expected to last through the next 12 to 15 months, according to Moody’s downgrade on 11 September.

As of 30 June, USS had $24.4m of cash on hand and another $44m available under the $220m asset-based revolver due 2030 without triggering the springing fixed charge covenant ratio, according to the ratings note. The company’s debt stack is untenable given its elevated leverage, pinned at around 18x on an LTM basis as of 30 June, the ratings agency said.

As part of the LME in 2024, the majority of existing first lien lenders and unsecured bondholders have swapped their debt at a discount for new first lien first out term loans and notes totaling about $446m, first lien second out of nearly $1.8bn, and first lien third out notes of about $194m. Existing ABL and revolver lenders rolled into new facilities with extended maturity dates, while portions of the existing legacy term loans and unsecured notes became junior to all of the new debt issued.

United Site Services and Platinum Equity declined to comment.