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Flying J Confirmed Plan Pays Creditors in Full
The Delaware bankruptcy court has approved the chapter 11 reorganization plan of Flying J, allowing the oil company to fully repay $1.4 billion owed to its creditors and keeping its equity intact. Flying J, one of the largest retail distributors of diesel fuel in North America, sold most of its assets, including its travel center and trucking operations, to pay back creditors. It also cut jobs to increase the funds available for creditors. The Ogden, Utah-based company filed for bankruptcy in December 2008 in the wake of plummeting oil prices. "We are incredibly pleased with the outcome of this case. In particular, payment in full of all secured and unsecured creditors plus postpetition interest is a major accomplishment. Eighteen months of hard work by the debtors, the committee, and their respective professionals paid off as reflected in this outstanding result. We congratulate everyone who contributed to this effort and wish Flying J and Pilot Travel Centers every success in the future," says Rob Feinstein, who represented the official committee of unsecured creditors.