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Flying J Files Chapter 11

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  • Flying J Files Chapter 11

    I thought this might be of interest to those who fill up there frequently. It sounds like it won't have any effect on our refueling.

    http://www.ksl.com/index.php?nid=148&sid=5145149

    Press release

    Ogden -- Flying J Inc. today announced that the Company and certain of its subsidiaries have filed voluntary petitions to reorganize under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court in Delaware. The filing will allow the Company to address near-term liquidity needs brought about by the precipitous decline in oil prices coupled with the disruption in the credit markets.

    All of Flying J's operations, including approximately 250 travel plazas and fuel stops, are open and serving customers in the normal course. The Company plans to continue normal business operations as it moves through the reorganization process.

    The filing includes Flying J Inc. and its Big West refining and Longhorn Pipeline subsidiaries only. No other subsidiaries or affiliates, including the Company's Canadian operations, were included in the filing or are subject to the reorganization proceedings.

    J. Phillip Adams, Flying J President and Chief Executive Officer, said: "Even though Flying J today is a successful and historically profitable company, it faced near-term liquidity pressure from an unprecedented combination of factors: the precipitous drop in the price of oil and the lack of available financing from our traditional sources due to disrupted credit markets. With this sudden and unanticipated inability to meet our liquidity needs, we regret that we had no other choice than a Chapter 11 filing to enable us to stabilize our financial base.

    "The good news is we have valuable assets, we do not expect layoffs will be necessary, and we are optimistic we will be able to generate substantial cash internally to allow us to meet our obligations going forward. "Our objective is to move through this process as quickly as possible and to work toward a solution that will address our short-term liquidity needs and allow us to meet our past obligations in full. In the meantime, our team is focused on continuing business as usual. We appreciate the support and understanding of our vendors and suppliers during this time," Mr. Adams said.

    The Company will be filing customary "First Day" motions to support its employees, customers and suppliers by providing for the Company's associates to continue to be paid in the usual manner, and for their medical, dental, life insurance, disability and other benefits to continue without disruption.

    Suppliers will be paid under normal terms for goods and services provided after the filing date of December 22, 2008.

    Courtesy: Flying J Web site
    www.CNGUtah.com

  • #2
    Re: Flying J Files Chapter 11

    sounds like crooks to me the amout of diesel that they sell should put plenty of cash in hand most cards for big truck tack your cash out of the bank daily whats the matter did they spend cash they didnt get from ripping truckers off for diesel at 5.15 a gallon whan it came down I feel about as sorry for them as I do for gm how about a goverment bail out for them. not

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    • #3
      Re: Flying J Files Chapter 11

      Originally posted by cowboy View Post
      sounds like crooks to me ...
      The thing that ticks me off about FJ is that their stinking "Preferred Customer FJ Rewards" card only gets you discounted fuel after you make purchases from inside. And it resets monthly .. ack!

      Whatever "discount" they give ya at the pump, is more than compensated by the profit they make off of ya buying overpriced food just so that you can get your "discount" at the pump.

      Talk about a carrot for the stupid .. sheeesh.


      ?Innovation is driven by having access to things.? -- Gleb Budman, CEO of backblaze.com

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      • #4
        Re: Flying J Files Chapter 11

        I heard from a friend of a friend (not a reliable source, so I don't know if it true or not) that Flying J was hoarding gasoline. They apparently purchased a lot of fuel when prices were up around $140/barrel thinking that oil was going to go even higher, and then they could make some serious profit. But then oil dropped and then they were left with paying the bill. This is pure speculation, it is not from a reliable source, it is just what I heard.
        Jared.
        Mountain Green, Utah
        2003 CNG Cavalier
        2003 CNG Silverado 2500HD

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        • #5
          Re: Flying J Files Chapter 11

          Originally posted by Highmarker View Post
          They apparently purchased a lot of fuel when prices were up around $140/barrel thinking that oil was going to go even higher, and then they could make some serious profit. But then oil dropped and then they were left with paying the bill.
          That's what happened to the airlines with their fuel hedging. I used to work for an airline and they circulated an internal memo patting themselves on the back in June of '08 because they had "hedged" virtually all of their fuel purchases for the rest of the year at $120 / bbl. In December they made a disclosure on their 10-K filing that they were having to write down the value of their hedging programs by $1.8 Billion dollars. Funny thing is that no heads rolled as a result of that monumental miscalculation.
          2004 Toyota Avalon bi-fuel
          2013 Tesla Model S 85

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