Judge approves sale of IdleAire, denies request for investigation

| Tuesday, June 17, 2008

A U.S. Bankruptcy Court judge recently approved the sale of IdleAire Technologies Corp. while at the same time denying a request for an investigation into the sale.

Bloomberg News reported that U.S. Bankruptcy Court Judge Kevin Gross made the ruling at a June 13 hearing. An auction for the company is set for July 3 if the company receives more than one qualified bid.

IdleAire filed for Chapter 11 bankruptcy on May 12. In a 2007 annual report submitted to the Securities and Exchange Commission, IdleAire officials stated the company never made money and that it has amassed a total net loss of more than $246 million since it went into operation.

The Knoxville, TN, News Sentinel speculated that investors might already be in place who would take over the operation.

The News Sentinel reported that the same day IdleAire officials filed for bankruptcy protection, a new corporate name, “IdleAire Acquisition LLC,” was reserved with the Delaware Division of Corporations.

An employee with the Division of Corporations told Land Line Magazine she could not disclose the name of the individual reserving the new corporate name.

A trustee from the U.S. Justice Department had requested an investigation into the proposed sale, saying that the company’s purchase price of $10 million is less than 5 percent of the reported value of the company’s assets.

The judge denied this request, allowing the sale to go forward.

IdleAire offers hookups for heating, cooling and other amenities at truck stops around the country.

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