STG Logistics Enters Chapter 11, Says Operations Will Continue Uninterrupted

Core Viewpoint - STG Logistics has filed for Chapter 11 bankruptcy to restructure and reduce its debt by nearly $1 billion, entering into a restructuring support agreement with lenders that eliminates approximately 91% of its debt and provides $150 million in new debtor-in-possession financing [1][2]. Group 1: Bankruptcy Filing and Restructuring - The company filed for Chapter 11 in a New Jersey bankruptcy court, aiming to reduce its debt load by approximately $952 million [1]. - STG intends to utilize the new capital to support core business operations during the Chapter 11 process and expects to exit bankruptcy in five months [2]. Group 2: Ownership Changes and Management Statements - The debt-for-equity swap will lead to new ownership by private equity firms Antares Capital, Fortress Investment Group, and Invesco, who will exchange their debt claims for stakes in the business post-bankruptcy [3]. - The CEO of STG Logistics stated that it is "business as usual" and that the restructuring will not impact service levels for customers, vendors, and partners [3]. Group 3: Operational Continuity - All facilities remain open and operational, with day-to-day roles, responsibilities, and wages unchanged, allowing STG to continue booking, scheduling, and fulfilling shipments [4]. - The company has filed "first day" motions to ensure continued payment of employee wages and benefits, maintain customer programs, and execute ordinary business functions [4].