STG Logistics Inc. ("STG" or the "Company"), one of the nation's largest providers of integrated port-to-door services and supply chain solutions for cargo owners and logistics providers, announced that it has entered into a Restructuring Support Agreement ("RSA") with its equity sponsors and lenders holding a requisite majority of STG's funded debt to significantly reduce the Company's outstanding debt obligations and secure up to $150 million of new capital from the Company's existing lenders, strengthening STG's balance sheet to support future growth and positioning STG for long-term success by significantly reducing interest expenses and providing the Company with ample liquidity.

To implement the RSA efficiently, STG and certain of its affiliates and subsidiaries voluntarily initiated a prearranged court-supervised reorganization process under chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of New Jersey (the "Court"). Importantly, STG's key financial partners remain committed to the Company throughout this process and are confident it will position STG to strengthen its market position while maintaining the highest standards of end-to-end service for customers nationwide.

"Today's announcement marks an important milestone in our efforts to strengthen STG amidst one of the most severe freight recessions in history," said Geoff Anderman, CEO of STG Logistics, "We are confident that leveraging the chapter 11 process will best position the business for long-term growth and success. I am deeply grateful to our valued team, customers, vendors, and other partners whose support enables us to continue delivering solutions for our customers at the highest levels while staying true to our core values of safety, service, integrity, and efficiency at the forefront of our operations."

STG will continue operating in the ordinary course of business throughout the restructuring process and remains committed to delivering at the highest levels for its employees, partners, customers, and vendors. The Company has filed a number of typical "first day" motions which, upon approval by the Court, will enable STG to continue to pay employee wages and benefits, maintain all customer programs, fulfill go-forward payments to key vendors, and execute other ordinary business functions.

In addition to cash on hand, STG intends to use up to $150 million of new money debtor-in-possession (DIP) financing from certain of the Company's existing lenders to support core business operations during the chapter 11 process.