Flying J Files Bankruptcy
- Thread starter RLENT
- Start date
I am thinking maybe some of their fuel suppliers are demanding payment up front because of the Chapter 11?? If it were your fuel wouldn't you want paid COD especially from a company under credit protection?
jaminjim
Veteran Expediter
The protection they received is only on debt pre filing date of the Bankruptcy. If the company looks viable, it is the best credit that you can extend. The company is monitored very closely by the Court. One of the things that the Company must do is pay any and all new debt on time, this is one of the ways that they can show the court that they are able to come out of Bankruptcy successfully.
Thanks Jim...so maybe they are just going thru contract renewals with some suppliers.
chefdennis
Veteran Expediter
What Jaminjim said. Any new debt is a pretty good bet. Its like a private citizen filing BK then the Banks extending them new credit lines, they know their debt can't go into the BK, and the client can't file for what, 7 yrs.
The courts pretty much keep a viable company with alot of assets in line with creditor to keep them in business. I think and i may be wrong, that even after the revaluation of the assets when the price of oil fell, the "J's" assets were still in good shape and the liabilites weren't out of line, it was just the 2 big loans that were tied to the value of oil at $100 a barrel that were called in when oli went to $40 a barrel that caught the "J"... they didn't expect this this fast and didn't convert some assets to cash fast enough..
I think the retail travel centers will be fine. It will take some time, and the conversion of some assets to in the refining group to cash that will pull them up.
The courts pretty much keep a viable company with alot of assets in line with creditor to keep them in business. I think and i may be wrong, that even after the revaluation of the assets when the price of oil fell, the "J's" assets were still in good shape and the liabilites weren't out of line, it was just the 2 big loans that were tied to the value of oil at $100 a barrel that were called in when oli went to $40 a barrel that caught the "J"... they didn't expect this this fast and didn't convert some assets to cash fast enough..
I think the retail travel centers will be fine. It will take some time, and the conversion of some assets to in the refining group to cash that will pull them up.
Unless the laws have changed in the last few years, you can come out of Bankruptcy today and file a new Bankruptcy tomorrow.
chefdennis
Veteran Expediter
Yea it ain't 7 yrs, it use to be, but when the BK laws were changed in 2005 they changed it. If you file chapter 7 bk, which most people do, you can't file again for 8 yrs. Now if you have previously filed chapter 7 bk and the next time you want to file, you can file chapter 13 bk, but you still have to wait 4 yrs.
BUT, since most PERSONAL bk cases filed since 2005 are now not being discharged, they are beinf set up on a scheduled payment plan, you could go back at anytime and let the bankrupy judge decide what you should do.
Most business BK's and the "J's" is are chapter 11, that is an automatic re-organization so that your bills get paid. No too many private citizens file chapter 11. As for a business refiling after, im sure all they would have to do is file under another "group" within the company to get around any time limits. but as a private citizen filing a personal BK, it WAS 7 yrs, now it is either 4 or 8, depending on which chapter you file.
I don't have a link, i called a lawyer friend you does BK's, he told me. so i am simply passing on what i was told.... well, we all know how much lawyers can be trusted, so maybe thats not a good thing either............
BUT, since most PERSONAL bk cases filed since 2005 are now not being discharged, they are beinf set up on a scheduled payment plan, you could go back at anytime and let the bankrupy judge decide what you should do.
Most business BK's and the "J's" is are chapter 11, that is an automatic re-organization so that your bills get paid. No too many private citizens file chapter 11. As for a business refiling after, im sure all they would have to do is file under another "group" within the company to get around any time limits. but as a private citizen filing a personal BK, it WAS 7 yrs, now it is either 4 or 8, depending on which chapter you file.
I don't have a link, i called a lawyer friend you does BK's, he told me. so i am simply passing on what i was told.... well, we all know how much lawyers can be trusted, so maybe thats not a good thing either............
nightcreacher
Veteran Expediter
Who really cares about the flying crook,oh i mean hook.YOou spend most of your time waiting in line
A person can Incorporate in Nevada, lease a couple of trucks, hire a solo or team to drive them, not pay anyone, pocket all he can in the next couple of months. Declare Chapter #7.Then become a new Corporation and do it all again, and file #7 again. As far as a time table I have first hand experience with Chapter #13. I filed twice with in two years in the mid to late 90's to keep investment property from being Foreclosed.
chefdennis
Veteran Expediter
bearcat wrote:
the word "NEW" is the key. By law, it is another Corporation and it hasn't filed in the past, the old corp did, if they would have not had to wait the 7 yrs, they wouldn't have to form another NEW corp...
As to your personal chapter 13, since we don't know, and its really no ones business how it all went down, i won't speak to it.
the word "NEW" is the key. By law, it is another Corporation and it hasn't filed in the past, the old corp did, if they would have not had to wait the 7 yrs, they wouldn't have to form another NEW corp...
As to your personal chapter 13, since we don't know, and its really no ones business how it all went down, i won't speak to it.
Depending on what a previous Bankruptcy was IE #7,11, 12, or 13. There can be a 8 year wait from a previous discharged Chapter #7 to no wait depending on the Petitioners status.
If nobody cared about them there wouldn't be lines to wait in .
nightcreacher
Veteran Expediter
and most of the people waiting in line are RVer's
If they start closing them down (enough truck stops) and enough truck drivers cannot find a secure place to do the 3 S' and have a meal with some choices, then the strike starts. Apparently, the profit margins are much smaller than many drivers realized...
from Press Release....
On December 22, 2008, Flying J Inc. and its Big West refining and Longhorn Pipeline subsidiaries filed voluntary petitions to reorganize under Chapter 11 of the U.S. Bankruptcy Code. The filing was made with the U.S. Bankruptcy Court in Delaware.
The scope of the filing is limited to these operations only. It does not apply to other business units or affiliates, or the company's Canadian operations. In all cases, including those subsidiaries covered by the filing, Flying J's operations remain open and are conducting business as usual.
Even though Flying J has been a successful 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 its traditional sources due to disrupted credit markets. With a sudden and unanticipated inability to meet its liquidity needs, the company had no other choice than a Chapter 11 filing to provide the time to work through a solution.
Flying J’s objective is to move through the reorganization process as quickly as possible and to work toward a solution that will address its short-term liquidity needs and allow it to meet its past obligations in full.
On December 22, 2008, Flying J Inc. and its Big West refining and Longhorn Pipeline subsidiaries filed voluntary petitions to reorganize under Chapter 11 of the U.S. Bankruptcy Code. The filing was made with the U.S. Bankruptcy Court in Delaware.
The scope of the filing is limited to these operations only. It does not apply to other business units or affiliates, or the company's Canadian operations. In all cases, including those subsidiaries covered by the filing, Flying J's operations remain open and are conducting business as usual.
Even though Flying J has been a successful 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 its traditional sources due to disrupted credit markets. With a sudden and unanticipated inability to meet its liquidity needs, the company had no other choice than a Chapter 11 filing to provide the time to work through a solution.
Flying J’s objective is to move through the reorganization process as quickly as possible and to work toward a solution that will address its short-term liquidity needs and allow it to meet its past obligations in full.
the precipitous drop in the price of oil
That's a great line! Didn't seem like they had a problem dealing with the skyrocketing price of oil this year. Or that night in September, 2001.
chefdennis
Veteran Expediter
Moot wrote:
Sure they had a problem, and that problem created this problem! they needed money, used oil on hand a futres based on $100 a barrel as collateral for those loads. when oil fell to $40 a barrel, the lenders called in those loans because the collateral they used wasn't worth the loans.... So yea they had a problem back then to the tune of close to 100 million in loans to do whatever with........
Sure they had a problem, and that problem created this problem! they needed money, used oil on hand a futres based on $100 a barrel as collateral for those loads. when oil fell to $40 a barrel, the lenders called in those loans because the collateral they used wasn't worth the loans.... So yea they had a problem back then to the tune of close to 100 million in loans to do whatever with........
RLENT
Veteran Expediter
Mebbe somebody forgot to tell somebody 'bout socking it away for a rainy day in that TAB bank thingie .....