KNOXVILLE, Tenn. — Flying J and Pilot Travel Centers have entered into a preliminary merger agreement that will allow Flying J’s travel plaza business to emerge from Chapter 11 bankruptcy protection.

The deal would allow all Flying J creditor obligations to be paid in full. Pilot has also agreed to provide $100 million in Debtor-in-Possession financing for Flying J’s operations, subject to Court approval and various conditions.

Pilot has over 300 facilities in 40 states and in Canada.

"After a careful and exhaustive review of the alternatives available, we have concluded that a merger with Pilot represents the best possible outcome for Flying J, our creditors, our customers, and our employees," said Crystal Call Maggelet, Chairman of the Board of Flying J. "Over the next few months, we will negotiate definitive agreements to merge our companies. This transaction will allow us to emerge from the bankruptcy process relatively quickly thereafter and to start a new chapter in the Flying J story."

The preliminary merger agreement with Pilot pertains specifically to Flying J’s core travel plaza business, and it excludes Longhorn Pipeline, Big West Oil, Flying J Oil & Gas, Haycock Petroleum, and Transportation Alliance Bank. Flying J is in the process of pursuing or evaluating alternatives for each of these other businesses.

Flying J filed for Chapter 11 protection last December after a precipitous drop in oil prices and disruption in the credit markets.