STG Logistics advances toward Chapter 11 exit after debt restructuring deal

U.S. integrated multimodal transportation and logistics provider STG Logistics Inc. says it has completed a court-supervised marketing process and reached a settlement related to litigation tied to its 2024 liability management transaction, clearing the way for what it expects will be a consensual emergence from Chapter 11 bankruptcy protection in the near term.

The company said it plans to seek approval in coming weeks for a recapitalization transaction outlined in its restructuring support agreement and plan of reorganization.

Under the agreement, lenders would assume majority ownership of the company in exchange for a restructuring of its capital structure, including reducing more than US$1 billion in debt and providing up to US$150 million in new capital.

STG said a required marketing process confirmed the transaction represented the best outcome for the company and its stakeholders, strengthening its balance sheet and supporting long-term growth.

“The completion of our marketing process and resolution of the LME litigation are key milestones that unlock our expected emergence from chapter 11 in the near future,” said Geoff Anderman, chief executive officer of STG Logistics. “The transaction we are moving forward with is the optimal solution to secure a strong future for STG and reflects investor confidence in our strategy and long-term prospects. With the support of all our key stakeholders, we are moving forward swiftly with a consensual confirmation process and will emerge as a strong, well-capitalized company, well-positioned to serve our customers, partners and employees well into the future.”

Upon emergence from Chapter 11, STG said it will be majority-owned by a group of financial institutions led by funds managed by Fortress Investment Group and Invesco Senior Secured Management, Inc.

The company said operations will continue as normal throughout the restructuring process, with no disruption to its integrated port-to-door transportation and logistics services.