Flying J and Pilot Travel Centers on Tuesday reached a preliminary agreement to merge their travel centers into a single business.
The agreement lays the framework for Ogden-based Flying J's travel plaza business to emerge from bankruptcy, the two companies announced.
Terms of the agreement were outlined in a document filed with a U.S. bankruptcy court in Delaware.
Pilot will also provide $100 million in financing to Flying J, if a bankruptcy judge agrees.
"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," Flying J Chairwoman Crystal Call Maggelet said.
Magglet said Flying J and Pilot will negotiate final terms of the merger over the next few months. Flying J would emerge from bankruptcy shortly afterward.
Flying J, its Longhorn pipeline and Big West refining subsidiaries, and other business units filed for bankruptcy in December. The companies cited a liquidity crisis brought on by the steep drop of oil prices and trouble getting credit.
The merger agreement with Knoxville, Tenn.-based Pilot excludes Longhorn Pipeline, Big West and the other units. Flying J is evaluating "alternatives" for those businesses.
Flying J operates 270 travel centers and fuel stops in 41 states and six Canadian Provinces.
The company employs 14,700 people,
Last edited by AE Iceman; 07-14-2009 at 10:34 PM.
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