STG Logistics, a multimodal transportation and logistics provider, has filed Chapter 11 bankruptcy in the District of New Jersey as part of a restructuring agreement.
The Columbus, Ohio-based company said this process will eliminate 91% of its debt and create up to $150 million of new capital.
STG Logistics said the court-supervised reorganization process includes certain affiliates and subsidiaries and that key financial partners remain committed to the company.
“We are confident that leveraging the Chapter 11 process will best position the business for long-term growth and success,” Geoff Anderman, STG Logistics CEO, said. “(This) announcement marks an important milestone in our efforts to strengthen STG amidst one of the most severe freight recessions in history.”
STG Logistics intends to maintain standard operations throughout the bankruptcy process.
The company said it has filed motions that will allow it to continue paying employee wages and benefits, maintain all customer programs, fulfill go-forward payments to key vendors and execute other ordinary business functions.
Debtor-in-possession financing is expected to support core business operations during the bankruptcy process, STG Logistics said.
According to its website, STG Logistics provides asset-based intermodal, marine and rail drayage, full and less-than-truckload transportation, warehousing and transloading services.
The company operates more than 60 locations across the U.S.
STG Logistics misclassification settlement
In August 2024, STG Logistics reached a settlement with owner-operators, ending its independent contractor model in California.
According to the complaint, the logistics provider controlled owner-operators’ operations, including the timing of their work, the work they performed and the steps required to complete it.
The class-action lawsuit was typical of misclassification claims against numerous large carriers in recent years.
Owner-operators accused STG Logistics of having a level of control over their operations that was “substantially similar” to that of the company’s employed drivers.
This $4.2 million payout to more than 400 former owner-operators followed similar settlements in other states. LL
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