STG Logistics Enters Chapter 11, Says Operations Will Continue Uninterrupted

Intermodal logistics services supplier STG Logistics has filed for Chapter 11 bankruptcy to restructure the institution and trim debts by astir $1 billion.

Filed successful a New Jersey bankruptcy court, the “port-to-door” cargo hauling and transloading institution entered into restructuring enactment statement with its lenders that eliminated astir 91 percent of the firm’s indebtedness and provides $150 cardinal successful caller debtor-in-possession (DIP) financing. In total, STG is reducing its indebtedness load by astir $952 million.

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The intermodal and drayage services institution intends to usage up to the maximum magnitude of caller superior received to enactment halfway concern operations during the Chapter 11 process. STG expects to exit the bankruptcy successful 5 months.

On the institution website, STG said successful its filing that a Chapter 11 bankruptcy does not mean the institution is going retired of concern oregon liquidating its assets.

But the debt-for-equity swap volition effect successful a caller unchangeable of owners, arsenic backstage equity firms Antares Capital, Fortress Investment Group and Invesco volition commercialized successful their indebtedness claims for stakes successful the concern erstwhile the institution exits from Chapter 11.

Geoff Anderman, CEO of STG Logistics, said successful a LinkedIn station Monday that it was “business arsenic usual” crossed the institution amid the changes.

The CEO said the restructuring would person nary interaction connected the company’s work levels for customers, vendors and partners.

All facilities stay unfastened and afloat operational, portion day-to-day roles, responsibilities and wages stay unchanged, STG says. The institution says it is continuing to book, docket and fulfill shipments crossed each work lines, with agreements with freight partners and motortruck drivers remaining intact.

In a abstracted statement, Anderman said that the determination would fortify the institution amid “one of the astir terrible freight recessions successful history.”

“We are assured that leveraging the Chapter 11 process volition champion presumption the concern for semipermanent maturation and success,” Anderman said. “I americium profoundly grateful to our valued team, customers, vendors, and different partners whose enactment enables america to proceed delivering solutions for our customers astatine the highest levels portion staying existent to our halfway values of safety, service, integrity, and ratio astatine the forefront of our operations.”

The institution has filed respective “first day” motions with the court, which upon its approval, volition alteration STG to proceed to wage worker wages and benefits, support each lawsuit programs, fulfill go-forward payments to vendors and execute different mean concern functions.