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OGDEN, Utah -- Flying J Inc., a convenience store and truck stop operator based here, took a step toward exiting its Chapter 11 bankruptcy as the company and its subsidiary, Big West of California LLC, signed agreements to sell its Bakersfield Refinery to Alon USA Energy Inc. subsidiary Paramount Petroleum Corp., which was also named the stalking horse bidder in the deal.
Flying J filed for bankruptcy Dec. 22, 2008. In a statement, the company said the sale will generate cash to help address obligations, and will continue the company's strategy of focusing on its profitable core businesses -- full-service travel plazas and fuel stops in the U.S. and Canada, as well as its North Salt Lake Refinery and Financial Services companies.
The refinery sale is subject to a bankruptcy court-approved auction process, court approval and other customary regulatory approvals. The purchase price for the refinery is $40 million plus the fair market value of inventory. The Bakersfield refinery is made up of a 70,000 barrel-per-day refinery and supporting operations network situated on a 942-acre site in Bakersfield, Calif. The agreement includes an assumption of environmental clean up obligations, the company stated.
Information regarding participation in the auction process may be obtained from either Robert Wheeler or Peter Bennett of Deutsche Bank Securities Inc., at (212) 250-6022 and (212) 250-4812, respectively.
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