STG Logistics has filed for Chapter 11 bankruptcy to reduce debts by nearly $1 billion. The company entered a restructuring support agreement with lenders, eliminating 91% of debt and receiving $150 million in DIP financing. STG plans to exit bankruptcy in five months, maintaining operations and service levels for customers.

Private equity firms Antares Capital, Fortress Investment Group, and Invesco will become new owners of STG Logistics through a debt-for-equity swap once the company exits Chapter 11. CEO Geoff Anderman stated that it’s “business as usual” amid restructuring, with no impact on service levels for customers, vendors, and partners.

STG Logistics remains fully operational during Chapter 11, with day-to-day roles, responsibilities, and wages unchanged. The company continues to book, schedule, and fulfill shipments across all service lines, with agreements with freight partners and truck drivers intact. CEO Anderman believes the decision will strengthen the company during a challenging freight recession.

Within its Chapter 11 filing, STG listed assets and liabilities between $1 billion and $10 billion. The company has between 10,001 and 25,000 creditors, with Union Pacific being the largest creditor owed $13.4 million. The bankruptcy filing temporarily halted a lawsuit from minority lenders Axos Financial and Siemens Financial Services surrounding a previous debt restructuring deal.

STG Logistics, based in Dublin, Ohio, owns 15,000 domestic containers and operates a joint door-to-door domestic intermodal service with CSX called RailPlus. The company also has a contract logistics business with 32 warehouses and access to 66 partner facilities across North America, offering transloading operations for international shippers.

Leveraging a fleet of 3,000 tractors, STG runs ocean drayage operations in U.S. ports and inland rail ramps, as well as a less-than-truckload (LTL) unit and an over-the-road (OTR) long-haul trucking segment. The company partners with over 25,000 carriers to service major North American markets via LTL, full truckload (FTL), and final mile capabilities.

Read more at Yahoo Finance: STG Logistics Enters Chapter 11, Says Operations Will Continue Uninterrupted