STG Logistics wins court approval of plan of reorganization

STG Logistics said the U.S. Bankruptcy Court for the District of New Jersey approved its plan of reorganization on May 18, clearing a path for the company to emerge from Chapter 11 in the coming weeks.

The company said the approved plan will reduce funded debt by more than $1 billion and will allow it to receive the final $25 million of previously committed capital under the restructuring.

STG had said in late April that it had completed a marketing process, resolved litigation tied to LME, and would seek confirmation of its plan. The court approval marks the latest step in that process.

The bankruptcy case began in January, when STG launched a prearranged Chapter 11 restructuring. The company said the approved plan now moves it closer to exiting court protection, though it did not give an exact emergence date.

A near-term exit would cap a restructuring that has centered on debt reduction, lender support and a consensual recapitalization transaction.

What comes next

STG said the approval clears the path to emergence, but the company still needs to complete the final steps before it exits Chapter 11.