STG Logistics announced that it has successfully completed its financial restructuring and has therefore emerged from Chapter 11 after the approval of the company’s Reorganization Plan on May 18.

A group of financial institutions led by funds managed by Fortress Investment Group , Fidelity Management & Research Company and Invesco Senior Secured Management , will now be the main owners of the company.

These partners contribute significant financial resources , experience in the transportation and logistics industry, and commitment to the future strategy as the leading integrated provider of multimodal transportation and logistics in North America.

“The completion of this process marks a pivotal moment for STG, positioning us to invest in our people, our service, our technology, and our capabilities,” said Geoff Anderman, the company’s Chief Executive Officer.

It’s worth recalling that on January 12, the firm announced it had filed for Chapter 11 bankruptcy protection in the United States. At the time, it stated that through the Restructuring Support Agreement (RSA), it would seek to reduce 91% of its debt and inject up to $150 million of new capital, with the aim of supporting future growth and increasing its liquidity.

After a little over five months in this process, STG Logistics, Inc. and some of its affiliates reached an agreement, whereby the firm reduced its financed debt obligations by nearly one billion dollars and secured new capital, providing the necessary financial flexibility to support its business operations in the future.

“With a significantly strengthened financial foundation and the backing of our new ownership group, we are well positioned to continue leading the industry as the only true provider of single-stop, port-to-door container shipping in North America, and we look forward to a bright future,” Anderman said.

He stated that with a significantly deleveraged balance sheet and the financial flexibility to invest in the business, the company will be well-positioned to capitalize on opportunities as the freight transport market recovers.

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