Filing Alert: STG Logistics Chapter 11
STG Logistics Files Chapter 11 in District of New Jersey
Update (Jan. 13, 2025): A comprehensive case summary is now available for the Chapter 11 bankruptcy filing of STG Logistics, Inc.
STG Logistics, Inc. and its debtor affiliates⁽¹⁾, a Dublin, OH-based provider of integrated port-to-door logistics and transportation services, filed for Chapter 11 protection on Jan. 12 in the U.S. Bankruptcy Court for the District of New Jersey.
The debtors attribute the filing to a prolonged freight market recession, inflationary pressures, and the impact of tariffs, which offset operational improvements and liquidity from a 2024 out-of-court recapitalization.
The filing aims to implement a comprehensive balance sheet recapitalization pursuant to a Restructuring Support Agreement (RSA) with an ad hoc group of lenders, certain other supporting lenders, and sponsors Wind Point Partners and Oaktree/Duration. The RSA contemplates equitizing all or a portion of the DIP claims and certain prepetition term loans, while providing an option to toggle to a sale process.
The company enters Chapter 11 with approximately $1.16 billion in funded debt and has secured a $294 million delayed-draw priming DIP facility from the ad hoc group, consisting of up to $150 million in new money and a $144 million roll-up.
STG Logistics, Inc. reports $1 billion to $10 billion in both assets and liabilities. The filing indicates that no funds will be available for distribution to unsecured creditors after administrative expenses are paid. The case number is 26-10258.
⁽¹⁾ For a complete list of debtor entities, see the Chapter 11 Debtors table.
Chapter 11 Debtors
Top Unsecured Claims
Key Parties
Counsel:
- Michael D. Sirota
Cole Schotz P.C.
Email: msirota@coleschotz.com
General Bankruptcy Counsel:
- Kirkland & Ellis LLP
- Kirkland & Ellis International LLP
Financial Advisor:
- AlixPartners, LLP
Investment Banker:
- PJT Partners LP
Independent Counsel to Reception Holdings, L.P., Reception Mezzanine Holdings, LLC, and Reception Purchaser LLC:
- White & Case LLP
Signatories:
- Tyler Holtgreven – Chief Financial Officer
Claims Agent:
Equity Security Holders:
- STG Acquisition Corp. – 100% Equity Interest
Bondoro Insights is continuing to monitor this case and will provide further coverage as appropriate.
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