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OGDEN, Utah -- In an attempt to raise cash to come out of Chapter 11 bankruptcy, Flying J Inc. sold its insurance subsidiary to the Buckner Co., a Salt Lake City-based insurance brokerage firm, reported Truckinginfo.com, and based on a report by The Salt Lake Tribune.
The deal will be official Jan. 1, according to the report.
Selling Flying J Insurance Services is the company's latest move to generate cash flow. The insurance unit collects roughly $25 million in insurance premiums per year, the report stated.
Flying J and some of its subsidiaries entered Chapter 11 in December 2008, due to liquidity issues following a steep decline in oil prices.
In July 2009, Pilot Travel Centers and Flying J agreed to merge the two companies' travel centers into a single operation, providing a framework for Flying J's core travel plaza business to emerge from chapter 11 bankruptcy.
One month later, a bankruptcy court approved the request to merge, and in October 2009, Pilot completed its due diligence, agreeing that it is willing to proceed with the deal unless there is a Material Adverse Change.
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