STG Logistics Files for Bankruptcy, Continues Operations
Intermodal and Drayage Services Provider Seeks Long-Term Stability With Chapter 11 Filing
Key Takeaways:
- STG Logistics filed for voluntary Chapter 11 bankruptcy Jan. 12 in New Jersey but plans to continue operating.
- The company secured $150 million in debtor-in-possession financing and a restructuring deal to cut about 91% of its debt.
- STG expects to exit bankruptcy in about five months after financial strain tied to a major intermodal expansion.
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Intermodal and drayage services provider STG Logistics filed for voluntary Chapter 11 bankruptcy Jan. 12, but intends to continue as a going concern.
STG and 64 affiliates filed for court protection with the U.S. Bankruptcy Court for the District of New Jersey.
However, STG said it had raised $150 million of debtor-in-possession (DIP) financing from some existing lenders to support core business operations during the Chapter 11 process.
The carrier intends to use the funds to keep paying employees, drivers and what it termed “key” vendors.
DIP loans are intended to see a company through bankruptcy proceedings.
Dublin, Ohio-based STG expects to exit court protection in around five months’ time.
STG also signed a restructuring support agreement with equity backers and lenders who hold a majority of the carrier’s debt.
The carrier is owned by Wind Point Partners, Duration Capital Partners and Oaktree Capital Management.
The RSA is expected to eliminate around 91% of STG’s outstanding debt obligations, slash interest expenses and boost STG’s liquidity.
“Today’s announcement marks an important milestone in our efforts to strengthen STG amidst one of the most severe freight recessions in history,” said CEO Geoff Anderman.
“We are confident that leveraging the Chapter 11 process will best position the business for long-term growth and success. I am deeply grateful to our valued team, customers, vendors and other partners whose support enables us to continue delivering solutions for our customers at the highest levels while staying true to our core values of safety, service, integrity and efficiency at the forefront of our operations,” Anderman added.
Anderman replaced Paul Svindland as STG’s top executive in April 2025. He had served as chief operating officer since January 2023. Svindland, the CEO since February 2020, became chairman.
Union Pacific Tops Creditor List
STG and its affiliates’ assets are estimated to be between $1 billion and $10 billion, according to court documents. The debtors’ liabilities are also between $1 billion and $10 billion. There are between 10,000 and 25,000 creditors, the documents show.
The largest creditor is Union Pacific Railroad, which is owed more than $13.4 million. The other creditors owed more than $1 million comprise CSX Intermodal, Kansas City Southern de Mexico, Personal HR Services and ABF-FBO Vitality Staffing Solutions.
STG previously restructured its debts in October 2024.
The carrier said the $300 million debt-and-equity deal with existing debt-holders would fund expansion plans.
But some of STG’s debt-holders were unhappy with the restructuring, particularly their non-participation in the transaction and a reordering of the creditor pecking order.
A New York court as recently as Jan. 3 ruled against the carrier and the backers of the restructuring.
STG was carrying debt from a major expansion.
In March 2022, STG bought XPO Logistics’ North American intermodal operations for $710 million.
The unit offered rail brokerage and drayage services at 48 locations and had around 700 employees at the time of the deal. It operated 2,200 tractors and 5,200 chassis.
Before the deal, STG operated a network of 28 port locations totaling more than 5 million square feet of space.
STG also was recapitalized with funding from Wind Point, as well as funds managed by Oaktree, at the time of the deal.
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