Ohio Trucking Company Files for Chapter 11 Bankruptcy Protection
STG Logistics, a major player in the trucking and logistics industry, filed for Chapter 11 bankruptcy protection on January 12. Based in Dublin, Ohio, the company is recognized as the fourth-largest intermodal marketing firm in the nation.
Details of the Chapter 11 Filing
The company filed its case in federal court in New Jersey. This filing is part of a pre-negotiated plan designed to significantly reduce STG’s debt by approximately 91%. The current debt load is close to $1 billion.
- The company will receive $150 million in new capital.
- Funds will be used for daily operations, including employee wages and vendor payments.
Company Statement and Expectations
STG Logistics clarified through industry sources that this bankruptcy filing is not a signal of winding down operations. The management anticipates emerging from bankruptcy within five months.
The firm mentioned, “We will continue to pay employee wages and benefits, maintain customer programs, and fulfill payments to key vendors,” contingent upon court approval of their initial motions.
Resolving Debt and Legal Challenges
This reorganization plan is aimed at resolving ongoing litigation with minority lenders. Those lenders claimed their rights were compromised by an earlier agreement, which allowed STG to defer interest payments while favoring senior creditors.
CEO’s Perspective
Geoff Anderman, the CEO of STG, emphasized the importance of this decision. “Today’s announcement marks an important milestone in strengthening STG during a challenging freight recession,” he stated. “We believe entering Chapter 11 will set the stage for future growth and success.”
Operational Scale
STG Logistics operates nearly 100 facilities across the U.S. and manages a substantial fleet, including about 15,000 containers and 3,000 tractors. Their services encompass intermodal, full-truckload, and less-than-truckload transportation, covering domestic routes and cross-border operations into Mexico.
