STG Logistics emerges from Chapter 11 after restructuring

STG Logistics has emerged from Chapter 11 bankruptcy protection after completing a financial restructuring that reduced its funded debt by nearly US$1 billion and secured new capital to support future operations.

The company’s plan of reorganization was approved May 18, allowing the U.S.-based logistics provider to exit Chapter 11 with what it described as greater financial flexibility to invest in its business.

“The completion of this process marks a pivotal moment for STG, positioning us to invest in our people, our service, our technology and our capabilities,” said Geoff Anderman, chief executive officer of STG Logistics, Inc. “We are grateful for the tireless efforts of our team, the continued loyalty of our customers and partners, and the support of our financial stakeholders and advisors throughout this process. With a significantly strengthened financial foundation and the backing of our new ownership group, we are well-positioned to continue leading the industry as the only true, one-stop port-to-door containerized freight provider in North America, and we look forward to a bright future ahead.”

A group of financial institutions led by funds managed by Fortress Investment Group, Fidelity Management & Research Company and Invesco Senior Secured Management has become the majority owner of the company.

STG said it will continue operating without disruption to its port-to-door transportation and logistics services or its relationships with customers, vendors and partners. The company said its strengthened balance sheet will allow it to invest in the business as freight market conditions improve.