IdleAire is in financial trouble. It’s serious enough that the company is saying there is “substantial doubt” about its ability to keep operating.
In paperwork submitted to the Securities and Exchange Commission, the Knoxville, TN-based company says it expects to show a net loss of $93 million for 2007.
The Knoxville News Sentinel reports the 8-year-old company has yet to have a profitable year in spite of receiving more than $55 million in government grants.
According to its Web site, IdleAire has 138 locations in 35 states that offer electrical power, Internet connection, TV and long-distance phone service.
Meanwhile, WBIR-TV, the Knoxville NBC affiliate, reported that a former aide to Knox County Mayor Mike Ragsdale claims the mayor secretly invested $10,000 dollars of his own money in IdleAire while using his office to steer millions in government grants to the company.