STG Logistics said Monday it has cleared the final hurdles to exit Chapter 11 bankruptcy, following the completion of a court-supervised marketing process and a settlement over disputed 2024 financial transactions. The company in January entered a pre-packaged Chapter 11 agreement.
The logistics giant, a major provider of port-to-door supply chain services, expects a "fully consensual emergence" in the coming weeks. The company will now seek court approval for a reorganization plan that shifts majority ownership to its lenders in exchange for eliminating more than $1 billion in debt.
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Under the terms of the restructuring support agreement, STG will receive up to $150 million in new capital. A group of financial institutions, led by funds managed by Fortress Investment Group and Invesco Senior Secured Management Inc., will take control of the company.
The announcement follows the resolution of litigation regarding the company’s 2024 liability management transaction. STG officials said the formal marketing process confirmed that the lender-led takeover represented the best path forward for the company’s stakeholders.
"The transaction we are moving forward with is the optimal solution to secure a strong future for STG," Chief Executive Officer Geoff Anderman said in a statement. He added that the company will emerge "well-capitalized" and ready to execute its long-term strategy.
STG stated that operations will continue as usual during the final stages of the bankruptcy process, with no expected disruptions to its transportation or logistics services.
Based in Chicago, STG Logistics operates one of the largest integrated networks for cargo owners in the United States, specializing in containerized logistics and drayage.
