Monday, December 22, 2008

Crude crash claims first major victim


A $200 million revolving line of credit to the Big West subsidiaries from Bank of America, originally set to mature in 2010, was called in Dec. 19, Adams said in court filings, causing Big West to default.

Wasteful ad spender (propoganda spinner) refiner files for bankruptcy protection:

Flying J Inc., an oil company whose operations include the Big West refinery on Rosedale Highway, filed for reorganization bankruptcy Monday.

Operations included in the filing cover about 250 travel plazas, the Big West refining arm and the company’s Longhorn Pipeline unit.

The fuel stops remain open, company officials said in a release, adding the reorganization might be completed without layoffs.

Initial hearings will be held Tuesday afternoon in Delaware district bankruptcy court, where the various companies filed voluntary Chapter 11 petitions.

The largest unsecured creditor of Flying J, which operates out of Utah, is Zion Bank, owed $85.8 million.

Most of the 30 others listed in court documents are oil companies, including Conoco Philips, BP & Oil Co., Valero, Occidental Energy Marketing and others.

Berry Petroleum, which moved headquarters from Bakersfield to Denver in June, is the third largest unsecured creditor, owed $26 million.

Flying J details: 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 our traditional sources due to disrupted credit markets, said
Flying J President and CEO J. Phillip Adams in the news release. Adams says the
company's employees, customers and suppliers will continue to be paid in the
usual manner.

Flying J Inc. is among the 20 largest private companies in America,
employing more than 16,000 people in the U.S. and Canada.

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