STG Logistics has won court approval to emerge from Chapter 11 bankruptcy in the coming weeks, clearing the way for a reorganization that will eliminate more than $1 billion in debt and close the legal battle that has hung over the transloading, drayage and intermodal provider since January.

The plan, approved Monday by the US Bankruptcy Court for the District of New Jersey, also releases the final $25 million of a previously committed $150 million capital infusion. Ownership of the reorganized company will go to a lender group led by affiliates of Fortress Investment Group, Fidelity Management & Research Company, and Invesco Senior Secured Management.

“[This] puts our company on a clear path to emerge from Chapter 11 with a strong financial foundation and significantly deleveraged capital structure,” STG’s CEO Geoff Anderman said in a statement.

The company has benefited from a rebound in domestic rail volumes after nearly four years of weak demand, which will stabilize the business after financial pressures pushed it into bankruptcy earlier this year. That rebound included an unusually strong March in which railroads hauled the third-most domestic containers ever, according to the Intermodal Association of North America. STG has been able to grow its business out of Southern California on a year-over-year basis, according to visibility provider RailState, although the exact figures are estimates.

For intermodal, the biggest operating detail is the container fleet. STG reached an agreement to restructure leases on 11,500 of its 15,000 containers, allowing it to avoid selling equipment as part of the bankruptcy process.

Revenue projected to rise at 6.9% CAGR through 2030

Court filings show that even after restructuring, STG is likely to operate with thin margins and a relatively modest cash cushion.

The company expects revenue to rise at a 6.9% compound annual growth rate through 2030, according to a filing with the bankruptcy court. Even so, it projects earnings before interest, taxes, depreciation and amortization (EBITA) of only about 4% of revenue, a relatively thin margin. By comparison, J.B. Hunt Transport Services and Schneider National, who also handle intermodal, transloading and drayage, posted companywide first-quarter EBITDA margins of approximately 10% to 13%.

STG’s projected cash balance is stronger than in January but remains tight. The company had about $37 million in cash when it filed for Chapter 11 in January, below the nearly $50 million threshold its advisers said was needed to cover about two weeks of operations. That threshold came from STG’s old debt agreements and will no longer apply after bankruptcy. Even so, projected cash on hand of $66 million in 2026, rising to an expected $85 million by 2030, suggests the company will still have a limited cushion.

That will still leave STG exposed to swings in freight demand, insurance claims, and service disruptions in a highly cyclical businesses. Schneider, by comparison, ended the first quarter of 2026 with $227.8 million in cash on hand.

For now, STG has bought itself time, a cleaner balance sheet and the backing of large financial institutions. Whether that amounts to a permanent resurgence rather than a temporary reprieve will depend on how much demand there is for intermodal, transloading, warehousing and drayage in the coming years.