STG Logistics Settles Litigation, Moves Closer to Chapter 11 Exit

Key Details STG Logistics has cleared a major legal hurdle in its bankruptcy journey. The Dublin, Ohio-based intermodal and drayage provider reached a settlement on April 27 regarding litigation tied to its 2024 liability management transaction (LMT). Minority lenders, including Axos Financial and Siemens Financial Services, had challenged the $300 million debt restructuring in New York state court. Why This Matters The settlement removes a significant obstacle to STG's emergence from Chapter 11, which the company filed for in January with 64 affiliates. STG's financial troubles stemmed from a $710 million acquisition of XPO Logistics' North American intermodal operations in March 2022, which loaded the carrier with substantial debt. Next Steps CEO Geoff Anderman stated that completing the marketing process and resolving the litigation "unlock our expected emergence from chapter 11 in the near future." STG plans to seek approval for its recapitalization transaction in the coming weeks. The restructuring support agreement (RSA) with equity backers and lenders will slash over $1 billion in debt obligations and inject up to $150 million in new capital, while eliminating approximately 91% of outstanding debt. The company secured $150 million in debtor-in-possession financing in January to sustain operations during restructuring. Union Pacific Railroad is STG's largest creditor, owed more than $13.4 million.