STG Logistics initiates Chapter 11 proceedings, outlines future strategy

STG Logistics Initiates Chapter 11 to Restructure Debt and Secure Future

STG Logistics, recognized as the fourth-largest asset-based intermodal marketing company in the United States, has filed for Chapter 11 bankruptcy protection in federal court in New Jersey. The company’s pre-arranged restructuring plan will eliminate 91% of its nearly $1 billion in debt and inject $150 million in fresh capital to maintain essential business activities and ensure payments to staff and suppliers.

This debt-for-equity agreement with investors and creditors is designed to keep the business operational, not to liquidate it. STG anticipates completing the bankruptcy process and emerging from court protection within about five months.

According to a statement released on Monday, “The Company has submitted several standard ‘first day’ motions which, once approved by the Court, will allow STG to continue paying employee wages and benefits, uphold all customer commitments, make ongoing payments to key vendors, and carry out other routine business operations.”

The pre-packaged restructuring is also intended to resolve recent legal challenges from minority lenders, who allege that their interests were harmed by a previous agreement that postponed interest payments and allegedly favored senior creditors.

Growth Through Acquisitions

Headquartered in Dublin, Ohio, STG was purchased by private equity firm Wind Point Partners in 2016. Since then, the company has completed 10 acquisitions, resulting in a fourfold increase in size.

In 2022, STG acquired XPO’s intermodal division for $710 million, a deal valued at roughly ten times trailing EBITDA. This acquisition included facilities, containers, tractors, and chassis, enabling STG to become a fully integrated port-to-door logistics provider and reducing its dependence on outside parties for drayage and intermodal services. The transaction was part of a recapitalization that brought in Oaktree Capital Management as a new financial partner.

Continuing its expansion, STG purchased Best Dedicated Solutions in 2023, adding an over-the-road carrier specializing in expedited, dry van, temperature-controlled, and flatbed transportation to its portfolio.

In 2024, a $300 million debt-and-equity financing package was secured, providing substantial capital to support STG’s ongoing growth and strategic initiatives. The deal included existing private equity investors and Duration Capital Partners.

Leadership’s Perspective

“This announcement represents a significant step in our mission to reinforce STG during one of the toughest freight downturns in history,” stated CEO Geoff Anderman. “We believe that utilizing the Chapter 11 process will best position our company for sustainable growth and future success.”

Company Operations and Services

STG operates a network of nearly 100 owned and partner facilities, offering container freight station and transloading services. The company manages a fleet of 15,000 53-foot containers and 3,000 tractors (operated by owner-operators), providing comprehensive coast-to-coast, cross-border, and intra-Mexico logistics solutions. Additionally, STG delivers both full-truckload and less-than-truckload services through a network of more than 25,000 carriers.