STG Logistics Exits Chapter 11, Cuts Debt by 90% With $150 Million Capital
Updated
Updated · FreightWaves · Jul 9
STG Logistics Exits Chapter 11, Cuts Debt by 90% With $150 Million Capital
1 articles · Updated · FreightWaves · Jul 9
Summary
STG Logistics completed its restructuring and emerged from Chapter 11 with funded debt reduced by about 90%, or more than $1 billion, and a new ownership group in place.
$150 million in fresh capital came from investors including Fortress, Fidelity and Invesco, which now hold a majority equity stake under the recapitalization plan launched in January.
STG said the process caused no disruption to customers or vendors and leaves the Dublin, Ohio-based intermodal provider with a leaner balance sheet to fund technology, service and capacity investments.
The stronger footing comes as intermodal demand improves: U.S. Class I rail intermodal traffic rose 8% year over year in the second quarter, helped by higher truckload spot rates and diesel prices.
Intermodal is currently 31% cheaper than over-the-road truckload service—well above the 15% savings level that typically drives freight to shift modes—potentially supporting STG's post-bankruptcy growth.