After nearly half a century in the business, a trucking company has filed for bankruptcy.
This news signals the latest of what’s being called the “Great Freight Recession,” during which a demand for shipping services has dropped while capacity has stayed high.
According to industry publication FreightWaves, STG Logistics — a Dublin, Ohio-based institution that also happens to be the country’s fourth-largest asset-based intermodal marketing company — filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of New Jersey on Monday.
This pre-negotiated plan, FreightWaves explains, wipes out 91 percent of STG’s almost $1 billion debt. It also gives it $1140 in new capital in order to support its core business operations, and to compensate its employees and vendors.
TTNews.com reports that the carrier expects to exit court protection in about five months.
“Today’s announcement marks an important milestone in our efforts to strength STG amidst one of the most severe freight recessions in history,” said CEO Geoff Anderman via company release. “We are confident that leverage the Chapter 11 process will best position the business for long-term growth and success.
“I am deeply grateful to our valued team, customers, vendors, and other partners whose support enables us to continue delivering solutions for our customers at the highest levels while staying true to our core values of safety, service, integrity, and efficient at the forefront of our operations.”
The release confirms that STG will continue operations “in the ordinary course of business” as a restructuring plan takes place.
Further information regarding bankruptcy proceedings remains pending.
