STG Logistics Files Bankruptcy Following Debt Deal Litigation

Cargo hauler STG Logistics filed for bankruptcy on Monday, following a contentious debt deal that sparked litigation by disgruntled creditors.

The company listed debt and assets in the range of $1 billion and $10 billion in court papers filed in New Jersey.

As part of its Chapter 11, the company entered into a restructuring support agreement that will help slash its interest expense and reduce its debt load by about 91%. It also received $150 million in a new-money loan to help finance operations during the bankruptcy process, the company said in a statement.

“Today’s announcement marks an important ...