European Cargo: grounded by financial pressure and an unforgiving market
European Cargo’s collapse appears to have been driven by a combination of rising operating costs, ...
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STG Logistics filed for Chapter 11 bankruptcy protection in New Jersey federal court on Monday, capping a decade-long private equity roll-up strategy that collapsed under the weight of aggressive leverage; an ill-timed mega-acquisition; and one of the most contentious liability management disputes in recent credit market memory.
The pre-negotiated restructuring eliminates 91% of the company’s ~$1bn debt, delivering $150m fresh capital to sustain operations and pay vendors/employees. This debt-for-equity swap with sponsors/lenders enables a five-month emergence from bankruptcy, not a wind-down.
The ...
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