Flying J files for bankruptcy protection
OGDEN, Utah — Flying J, operators of an expansive network of truck stops throughout the US and Canada, has filed for Chapter 11 bankruptcy protection in the US.
Its Canadian operations, however, are unaffected by the US filing.
The company announced yesterday that it was taking action in light of falling oil prices and a disruption in the credit markets. It plans to restructure while under Chapter 11 protection, but in the meantime it will continue operating all 250 of its truck stops.
“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,” announced J. Phillp Adams, president and CEO of Flying J.
“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,” he added. “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.”
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