Bankruptcy Court Confirms Flying J Reorg Plan
OGDEN, Utah -- Flying J Inc. and its debtor subsidiaries announced Wednesday that their plan of reorganization, which provides for the full payment of its creditors in cash plus interest, was confirmed by the United States Bankruptcy Court for the District of Delaware, The Trucker News Services reported.
Since filing for Chapter 11 bankruptcy protection Dec. 22, 2008, Flying J pursued restructuring activities that have successfully improved the profitability of its core businesses, and completed a merger of the company’s retail operations with Pilot Travel Centers. In addition, Flying J refinanced some of its debt and sold certain non-core assets, including Longhorn Pipeline, Flying J Oil and Gas, Haycock Petroleum, and Big West of California, according to the report.
These efforts have enabled the company to operate more efficiently, and repay in full the $1.4 billion owed its creditors, Flying J said. The distributions on allowed claims of the company’s creditors are expected to commence before the end of July.
“We have had to make some very difficult decisions over the past 18 months to maximize value and pay back our creditors,” said Flying J CEO Crystal Maggelet, who will become a member of the board of directors of the merged company. “Like many companies in today’s economy, this meant job loss for some employees, many of whom have been with us a very long time. Impact on employees has been the most difficult part of the restructuring process. We are now poised for a bright future. Moreover, I am very happy that the Flying J brand will not just survive, but thrive into the future.”
Post-merger, Pilot Flying J will continue to operate the locations under the Flying J brand. In an effort to reduce any potential confusion, Flying J Inc. will change its corporate name to FJ Management Inc., according to the report.
FJ Management will continue to own and operate the Big West Oil refinery in North Salt Lake, Utah, and Transportation Alliance Bank (TAB), plus maintain an ownership stake in TCH (Transportation Clearing House), and in the recently formed Pilot Flying J nationwide network of travel centers, the company stated.
In other Flying J news, TRANSFLO Express truck stop scanning from Pegasus TransTech is now available at 164 Flying J locations in the U.S. and Canada. This project was completed just one week after Pilot Travel Centers announced the sale of the Flying J Scan & Go assets to Pegasus TransTech, according to a news release.
TRANSFLO Express will be installed in more than 50 additional Flying J locations by the end of the month. The 50 additional TRANSFLO Express scan stations will be installed in locations that previously did not operate Flying J Scan & Go Xpress.
With TRANSFLO Express, delivery documents are sent electronically to the fleet for immediate billing and payroll processing, which expedites document delivery and results in fleets and drivers getting paid faster, according to the company.