Carlyle Group LP's Synagro Technologies Inc filed for Chapter 11 bankruptcy protection on Wednesday April 24th, with a plan to sell the business to the Swedish private equity firm EQT Partners for $455 million. The sale will be completed in 60 to 90 days.

The sale is subject to higher bids and must be approved by the U.S. Bankruptcy Court in Wilmington, Delaware, where Synagro filed for Chapter 11 protection from creditors.

The company also agreed to a $30 million debtor-in-possession loan with its current lenders to fund operations during its bankruptcy.

On January 28, 2007, the Carlyle group purchased Synagro Technologies, a munincipal sludge hauler and spreader, for $5.76 per share.

Synagro is the largest recycler of organic waste in the $2 billion U.S. market. Synagro was founded in 1986 and employs 800 in 34 states. It manages byproducts of wastewater treatment, converting the residual matter into fertilizer and alternative fuels.

The company also lost two major contracts in New York City and Detroit. Synagro's Detroit contract was mired in a bribery scandal that weighed on the public image of the company.

Synagro said in court documents it had assets of between $10 million and $50 million and liabilities of between $100 million and $500 million.