STG Logistics’ Minority Lenders Challenge Bankruptcy Financing

A group of STG Logistics’ minority lenders objected to a request to fund the company’s Chapter 11 bankruptcy over purported contractual rights violations.

A 2024 liability management transaction that restructured the cargo hauler’s debt to the benefit of other lenders was invalid, Axos Financial Inc. and Siemens Financial Services Inc. argued in a Feb. 3 filing in the US Bankruptcy Court for the District of New Jersey. Their related claims must be resolved and any final order authorizing the financing should include appropriate protections, the minority lenders said.

“Without such protections, it will be virtually impossible to ‘unscramble the egg’ ...