DUBLIN, Ohio — STG Logistics, the nation’s fourth-largest asset-based intermodal marketing company, filed for Chapter 11 bankruptcy protection Jan. 12 in federal court in New Jersey, the company announced.
The Dublin, Ohio-based logistics firm entered the court-supervised restructuring under a pre-negotiated plan that would eliminate about 91% of its nearly $1 billion debt load and provide $150 million in new capital to support day-to-day operations, including paying employees and vendors.
Company officials told industry publication FreightWaves the filing is not a wind-down and that STG expects to emerge from bankruptcy in about five months.
“The Company has filed a number of typical ‘first day’ motions which, upon approval by the Court, will enable STG to continue to pay employee wages and benefits, maintain all customer programs, fulfill go-forward payments to key vendors, and execute other ordinary business functions,” STG said in a statement Monday.
The pre-packaged deal is also expected to resolve recent litigation brought by minority lenders, who alleged their rights were impaired by a prior agreement that allowed STG to delay interest payments and granted more favorable terms to senior creditors.
“Today’s announcement marks an important milestone in our efforts to strengthen STG amidst one of the most severe freight recessions in history,” CEO Geoff Anderman said. “We are confident that leveraging the Chapter 11 process will best position the business for long-term growth and success.”
STG operates nearly 100 owned and partner facilities nationwide and manages about 15,000 containers and 3,000 tractors, providing intermodal, full-truckload and less-than-truckload transportation across the U.S., cross-border markets and Mexico.
