New updates have been reported about STG Logistics.
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STG Logistics has completed a court-supervised marketing process that confirmed a lender-backed recapitalization as the best available option and has settled litigation with minority lenders over its 2024 liability management transaction, removing a key obstacle to its Chapter 11 exit. The company will now seek court approval of its recapitalization transaction and Plan of Reorganization in an upcoming confirmation hearing, aiming to emerge as a stronger, fully consensual, and well-capitalized business.
Under the Restructuring Support Agreement, STG’s lenders will assume majority ownership in exchange for a comprehensive restructuring that cuts more than $1 billion of debt and provides up to $150 million in new capital, materially delevering the balance sheet and improving liquidity. Upon emergence, a lender group led by funds managed by Fortress Investment Group and Invesco Senior Secured Management will control the company and back STG’s strategy to expand its integrated port-to-door and multimodal logistics services, while day-to-day operations are expected to continue without disruption for customers and partners.