Flying J, Oil Refiner, Transporter, Gas Stations Files Bankruptcy

[Bangkoktraveler]

Flying J Inc., an oil refiner, transporter and travel-center owner, filed for bankruptcy, blaming a cash crisis brought on by declines in oil prices.

 

 

The Ogden, Utah-based company listed assets of more than $1 billion and debt of $500 million to $1 billion in court documents filed today in Wilmington, Delaware.

 

 

Flying J expects to recover from â??the precipitous drop in the price of oilâ? by reorganizing under Chapter 11 of the U.S. bankruptcy code, Chief Executive Officer J. Phillip Adams said in court papers.

 

 

The company employs about 16,000 people and is among the 20 biggest closely held companies in the U.S., with sales of more than $16.2 billion in 2007, according to court records. Founded in 1968 with four gasoline stations, it now operates 200 travel centers, two refineries and a 700-mile (1,126-kilometer) pipeline that carries gasoline and diesel from Houston to El Paso, Texas, according to court filings.

 

 

Flying Jâ??s cash crisis has grown as oil prices have tumbled, Adams said in court documents. Since September, the companyâ??s access to cash has dropped by $155 million.

 

 

On Dec. 19, Bank of American NA seized a â??substantial sum of cashâ? from one of Flying Jâ??s units because the company had allegedly violated loan terms. The bank is the agent for lenders owed $395 million. The next day, another agent refused to allow a different Flying J unit from withdrawing cash from an account, the company said.

 

 

Affiliates Longhorn Partners Pipeline LP, Longhorn Pipeline Holdings and Longhorn Pipeline, Big West of California, Big West Oil, Big West Transportation, also sought protection.

 

 

SemGroup Bankruptcy

 

 

Flying J is the latest energy company to file bankruptcy as prices fall. SemGroup LP filed for bankruptcy in July after margin calls on trades in energy futures and options sank the Tulsa, Oklahoma-based company, which had assets of $7.66 billion, according to court papers.

 

 

VeraSun Energy Corp. filed for bankruptcy protection in October, blaming swings in the price of corn, the main ingredient for ethanol.

 

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[passingthru69]

I stop at Flying J truckstops to get fuel alot.

When we were at one the other week, my wife and I went into shower and then to eat. The food was the worst in a long time. My wife asked me what is happening and I said they had no money. Kinda joking around. Well I guess I was right.

All they want to offer is cheap crap in the stores.

They geared up for the tourists and forgot about the truck drivers that spend the most money at their locations.

I wonder what is going to happen to the money that drivers have invested in their banking system?

They were saying that they have a better interest rate than most banks.

I was thinking about opening an account with them. Glad I did'nt now

[cavanami]

Bummer. They usually had the best prices gas in the area! Another one bites the dust...

[passingthru69]

Yes, they have the lower cost fuel. There are 3 other bigger players in the market. But two of them are owned by the same corp. now.

Pilot truckstops are only good for fuel and get out. Small lots and fast food crap.

Wonder who might make a play to buy them out.

I liked the mom and pop places, but thay have slowly been fading the wayside.

Read a post on one of the driver forums a few months back that Flying J was putting a cap on companies with fuel cards through them.You reach near your limit and they were cutting your cards untill you put more in.

At one time they gave you grace period. Then when fuel was sky high they started getting nervous about you being able to pay your fuel bill

[Khun_Kong]

I guess I just don't understand economics or math or law or logic or something.

 

"The Ogden, Utah-based company listed assets of more than $1 billion and debt of $500 million to $1 billion in court documents filed today in Wilmington, Delaware."

 

So they're worth somewhere between 500 million and something closer, but not equal, to zero. How the fuck is that bankruptcy? Does it have something to do with the protections that bankruptcy offers? And how does a company have any economic statement that includes "give or take a half BILLION dollars"?

 

 

[Bangkoktraveler]

I guess I just don't understand economics or math or law or logic or something.

 

"The Ogden, Utah-based company listed assets of more than $1 billion and debt of $500 million to $1 billion in court documents filed today in Wilmington, Delaware."

 

So they're worth somewhere between 500 million and something closer, but not equal, to zero. How the fuck is that bankruptcy? Does it have something to do with the protections that bankruptcy offers? And how does a company have any economic statement that includes "give or take a half BILLION dollars"?

 

 

 

 

Flying J is filing Chapter 11 which is a reorganization bankruptcy. Their problem is not having assets, their problem is cash flow.

[..]

Yup. BK is the legal way to stiff your creditors. Looks like they did not like the ROI this year and wanted to do something about it...

 

Cheers,

SD