STG Logistics files Chapter 11, charts path forward

The nation’s fourth-largest asset-based intermodal selling company, STG Logistics, filed for Chapter 11 bankruptcy extortion successful a New Jersey national tribunal connected Monday. The pre-negotiated program wipes retired 91% of the company’s astir $1 cardinal indebtedness load and gives it $150M successful caller superior to enactment halfway concern operations and to wage employees and vendors.

The debt-for-equity woody with sponsors and lenders is not a upwind down. The institution expects to look from bankruptcy successful astir 5 months.

“The Company has filed a fig of emblematic ‘first day’ motions which, upon support by the Court, volition alteration STG to proceed to wage worker wages and benefits, support each lawsuit programs, fulfill go-forward payments to cardinal vendors, and execute different mean concern functions,” a Monday connection read.

The pre-packaged woody is besides expected to code caller litigation brought by the company’s number lenders, who assertion their rights were impaired done a woody that allowed STG to hold involvement payments and allegedly gave much favorable presumption to elder creditors.

Dublin, Ohio-based STG was acquired by backstage equity steadfast Wind Point Partners successful 2016. As a portfolio company, it made 10 acquisitions, quadrupling successful size.

It acquired XPO’s intermodal portion for $710 cardinal (roughly 10x trailing EBITDA) successful 2022. The woody included facilities, containers, tractors and chassis, making STG a vertically integrated port-to-door logistics provider, and reducing its reliance connected 3rd parties for drayage and intermodal capacity. (The acquisition occurred successful conjunction with a recapitalization, which brought connected a caller fiscal partner, Oaktree Capital Management.)

In 2023, it acquired Best Dedicated Solutions — an over-the-road bearer specializing successful expedited, adust van, temperature-controlled and flatbed transportation.

A $300 cardinal debt-and-equity woody successful 2024 provided it with “significant superior to substance its ongoing enlargement and strategical maturation initiatives.” The transaction included extant backstage equity backers arsenic good arsenic Duration Capital Partners.

“Today’s announcement marks an important milestone successful our efforts to fortify STG amidst 1 of the astir terrible freight recessions successful history,” said STG CEO Geoff Anderman. “We are assured that leveraging the section 11 process volition champion presumption the concern for semipermanent maturation and success.”

STG provides instrumentality freight presumption and transloading services done a web of astir 100 owned and spouse facilities. It is an asset-backed intermodal marketplace institution with 15,000 53-foot containers and 3,000 tractors (owner-operators), providing coast-to-coast, cross-border and intra-Mexico service. It besides provides full-truckload and less-than-truckload services done a 25,000-plus bearer network.