Flying J and Pilot Travel Centers announced July 14 they have reached a preliminary agreement to merge. The agreement will provide a framework for Flying J’s core travel plaza business to emerge from Chapter 11 bankruptcy protection.
If the bankruptcy court approves, Pilot has also agreed to provide $100 million in debtor-in-possession financing for Flying J’s operations.
“After a careful and exhaustive review of the alternatives available, we have concluded that a merger with Pilot represents the best possible outcome for Flying J, our creditors, our customers, and our employees,” said Crystal Call Maggelet, chairman of the board of Flying J.
“Over the next few months, we will negotiate definitive agreements to merge our companies. This transaction will allow us to emerge from the bankruptcy process relatively quickly thereafter and to start a new chapter in the Flying J story,” said Maggelet.
Flying J operates 270 travel centers and fuel stops in 41 states and six Canadian provinces. The company employs 14,700 people, including 2,187 in Utah.