STG Logistics declares bankruptcy during 'great Freight Recession' STG Logistics, a prominent trucking company based in Dublin, Ohio, has declared Chapter 11 bankruptcy. This development occurs during a period termed the "Great Freight Recession," characterized by a significant decline in demand for shipping services despite high capacity levels. Details of bankruptcy filing. On Monday, STG Logistics filed for bankruptcy protection in the U.S. Bankruptcy Court for the District of New Jersey. This decision impacts the company, which ranks as the fourth-largest asset-based intermodal marketing organization in the country. Financial restructuring. As part of its restructuring plan, STG plans to eliminate 91 percent of its nearly $1 billion debt. The new plan will provide the company with an infusion of $114 million in capital. This capital is vital for maintaining business operations and ensuring proper compensation for employees and vendors. Expected timeline for recovery. The company aims to exit bankruptcy court protection within five months. CEO Geoff Anderman expressed optimism about the restructuring process. He highlighted its importance for STG's long-term growth and success. Commitment to operations. * STG Logistics will continue normal operations during the bankruptcy proceedings. * Operations will focus on delivering high-quality service while adhering to core values, including safety and integrity. Further details on the bankruptcy proceedings will be made available as the situation develops. STG Logistics aims to leverage this restructuring to enhance its position in a challenging freight market.

STG files Chapter 11, seeks US$150 million in financing. STG Logistics Inc. (STG), a major US provider of integrated port-to-door and supply chain services, said it has signed a Restructuring Support Agreement (RSA) with its equity sponsors and lenders holding a requisite majority of its funded debt, aimed at materially deleveraging the company and securing up to US$150 million of new capital. The transaction is designed to reduce STG's outstanding debt obligations, cut interest expense, and bolster liquidity to support future growth. The company, through a PR statement, details that to implement the RSA, STG and certain affiliates voluntarily initiated a prearranged, court-supervised reorganization under Chapter 11 in the US Bankruptcy Court for the District of New Jersey. STG says operations will continue in the ordinary course during the process, supported by "first-day" motions intended to keep wages and benefits paid, maintain customer programs, and ensure go-forward payments to key vendors. Geoff Anderman, CEO, STG, says the filing is intended to strengthen STG during what he described as a severe freight downturn, while maintaining service levels and focusing on the company's operating values. In a separate LinkedIn post, Anderman emphasizes that it is "business as usual," and states the restructuring work does not affect STG's ability to continue delivering for customers, vendors, and partners, positioning the company for long-term growth as a "one-stop, port-to-door containerized logistics provider." STG says it expects to use up to US$150 million in new-money debtor-in-possession (DIP) financing, in addition to cash on hand, to support core operations while the Chapter 11 case proceeds. Court-filed disclosures that the company states the Chapter 11 process is intended to deliver a full balance-sheet recapitalization under a RSA backed by an ad hoc group of lenders, other supporting lenders, and sponsors Wind Point Partners and Oaktree/Duration, according to Bondoro. The RSA contemplates equitizing all or part of the debtor-in-possession (DIP) claims and certain prepetition term loans, while preserving an option to toggle into a sale process. STG entered Chapter 11 with about US$1.16 billion in funded debt and secured a US$294 million delayed-draw priming DIP facility from the ad hoc group, consisting of up to US$150 million in new money and a US$144 million roll-up. Bondoro also notes STG reported US$1 billion to US$10 billion in both assets and liabilities, and indicated no funds would be available for unsecured creditors after administrative expenses are paid. The Washington Post reports that last year, STG reached a refinancing deal with lenders including Fortress Investment Group and Invesco to restructure US$725 million in term loans and a US$150 million revolving credit facility that had financed its 2022 acquisition of XPO Logistics' intermodal division. STG's restructuring comes amid litigation brought by minority lenders Axos Financial and Siemens Financial Services tied to STG's prior financing transactions. Reporting has described how STG worked with lenders including Fortress Investment Group and Invesco on a restructuring of debt originally raised to finance the 2022 acquisition of XPO Logistics' intermodal division, including US$725 million in term loans and a US$150 million revolver. In the New York Commercial Division case Axos Financial, Inc. v. Reception Purchaser, LLC et al., the court granted unopposed motions to seal/redact confidential exhibits that included credit agreement amendments and related intercompany and "dropdown" credit agreements involving STG-related defendants, citing commercially sensitive, non-public financing information. A New York judge largely rejected efforts to throw out a lawsuit brought by minority lenders Axos Financial and Siemens Financial Services, who argue they were excluded from STG's "double-dip" liability management transaction and that the deal impaired their contractual rights under the financing documents. According to The Washington Post, claims against STG are now paused under the automatic stay of chapter 11. STG positions Mexico as part of its intermodal footprint, marketing cross-border and intra-Mexico door-to-door containerized service that combines rail linehaul with local drayage. STG says containers can move through Mexican rail ramps, with local customs clearance supported, before final-mile delivery by truck. Founded in 1985, STG expanded through acquisitions and private-equity backing, including Wind Point Partners' acquisition in 2016. In 2022, STG acquired XPO Logistics' North American intermodal business, a deal in which 48 locations and about 700 employees transferred to STG, materially expanding its containerized logistics footprint.

STG Logistics, the fourth-largest asset-based intermodal marketing company in the US, has filed for Chapter 11 bankruptcy protection in New Jersey federal court. The pre-negotiated plan eliminates 91% of the company's nearly $1 billion debt and provides $150 million in new capital. The Dublin, Ohio-based firm expects to emerge from bankruptcy in approximately five months. The debt-for-equity deal will allow STG to continue paying employees and vendors whilst maintaining customer programmes. Acquired by Wind Point Partners in 2016, STG expanded through ten acquisitions, including XPO's intermodal unit for $710 million in 2022. The company operates nearly 100 facilities, 15,000 containers and 3,000 tractors. CEO Geoff Anderman cited "one of the most severe freight recessions in history" as context for the restructuring.