STG Logistics announced Monday that it has reached a deal with lenders and plans to soon exit bankruptcy protection.
The intermodal marketing company said the recapitalization plan gives Fortress Investment Group and Invesco, among others, majority ownership in exchange for a $1-billion debt reduction (over 90% of outstanding debt) and up to $150 million in fresh capital.
The deal also settles litigation from the company’s minority lenders, who claimed their rights were impaired in a previous deal between STG and primary lenders.
STG said it has completed a “court-supervised marketing process” and is nearing a “fully consensual” exit from bankruptcy, awaiting final confirmation of the recapitalization plan.
The company entered a pre-packaged Chapter 11 agreement in January.
“The transaction we are moving forward with is the optimal solution to secure a strong future for STG and reflects investor confidence in our strategy and long-term prospects,” said STG CEO Geoff Anderman in a news release. “With the support of all our key stakeholders, we are moving forward swiftly with a consensual confirmation process and will emerge as a strong, well-capitalized company, well-positioned to serve our customers, partners, and employees well into the future.”
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