The refiner and truckstop retailer--along with Longhorn Partners Pipeline LP, Big West Oil LLC, Big West of California LLC, Longhorn Pipeline Inc., Big West Transportation Inc. and Longhorn Pipeline [image-nocss] Holdings LLC--filed for Chapter 11 bankruptcy protection in late December 2008.
In late January, Flying J named chairperson Crystal Call Maggelet to the additional duties of president and CEO, assuming operational leadership of the company. She succeeded J. Phillip Adams, who resigned as president and CEO. At that time, the company also retained a chief restructuring officer, John Boken. A senior managing director from the firm of Zolfo Cooper, Boken is leading the company's overall restructuring process, serving as a liaison to our various creditor groups, among other duties.
Last week, the company issued a restructuring update for the benefit of its employees. It said, "Overall, our restructuring efforts are progressing well. The process is slow and is certainly challenging all of us to remain patient. A major accomplishment has been the completion of our business plan for the next five years. The business plan is helping our creditors better understand our business and is an essential tool for formulating strategies to emerge from bankruptcy."
It added, "We are continuing separate processes to sell both the Longhorn Pipeline and the Bakersfield Refinery. We have contracted with investment bankers to assist in those processes. Interest in both assets has been good, but there is still much work to do. We are following the established procedures for selling assets during a bankruptcy case which takes some additional time. Nevertheless, we hope to have both of these sales finalized during the summer. We also have several parcels of excess land near some of our operating travel plazas that are for sale.... Contrary to rumors you may have heard no sales of other core assets are in the process at this time."
The update concluded with a request that employees "be mindful of the company resources. If you see a way to be more efficient, bring it to the attention of a manager or supervisor. If 14,000 employees all help save $5 per day, it will add up to a large sum."
Click herefor the full restructuring update.
Meanwhile, even as Flying J execs are turning to their employees to help them dig out of a financial hole, they are also trimming hours on foodservice in their stores. The Flying J Travel Plaza, in Emporia, Kansas, has shortened its foodservice hours because of the economy, reported The Emporia Gazette. Foodservice hours at the plaza previously ran 24 hours a day. Now the restaurant will close from midnight to 5:00 a.m. Sunday through Thursday. The restaurant will stay open all night on Fridays and Saturdays.
"It's a corporate decision," restaurant manager Todd Wilson told the newspaper. "With the economy on the downturn, corporate is pulling third shift from a lot of stores."
Flying J declined CSP Daily News request to comment on changes in hours.
Ogden, Utah-based Flying J operates more than 240 retail locations, including travel plazas, convenience stores, restaurants, motels and truck service centers in 41 states and six Canadian provinces. In addition to the usual truckstop services such as food, diesel and gasoline and showers, the company offers banking, bulk fuel programs, communications (WiFi) fuel cost analysis insurance and truck fleet sales. It also explores for, refines and transports petroleum products.
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