STG Logistics says it is nearing a consensual exit from Chapter 11 after completing a court-supervised sale process and resolving litigation tied to a 2024 liability management transaction, the company announced Monday.
The company plans to seek court approval of its restructuring plan in the coming weeks, following what it described as a marketing process that confirmed a lender-backed recapitalization as the best available path forward.
Under the restructuring support agreement, STG’s lenders will assume majority ownership in exchange for cutting more than $1 billion in debt and providing up to $150 million in new capital.
“The completion of our marketing process and resolution of the litigation are key milestones that unlock our expected emergence from Chapter 11 in the near future,” said CEO Geoff Anderman. “The transaction we are moving forward with is the optimal solution to secure a strong future for STG.”
The company said it has reached a settlement with minority lenders over the earlier liability management transaction, resolving all outstanding claims and clearing the way for a smoother confirmation process.
Once the plan is approved, STG will be majority-owned by a group of financial institutions led by Fortress Investment Group and Invesco Senior Secured Management.
STG said operations will continue without disruption throughout the restructuring process, including its port-to-door service offerings across intermodal, drayage, truckload and LTL, warehousing and transloading.
The company indicated it remains on track to emerge from Chapter 11 as a “well-capitalized” logistics provider in the near term.
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