Nearly five years after the now-defunct IdleAire Technologies Corp., headquartered in Knoxville, TX, filed for Chapter 11 bankruptcy, the U.S. Securities and Exchange Commission has given the company an ultimatum. IdleAire must either respond to repeated delinquency filing requests or face having its stock deregistered with the SEC.
The administrative proceeding was initiated against IdleAire Technologies, which hasn’t operated since 2008. It is not to be confused with IdleAir, owned by Convoy Solutions, which re-emerged under a new name and new management in 2011.
In its final annual report filed in 2007, IdleAire Technologies reported net losses of more than $93 million in the prior 12 months, and lost an estimated $246 million in grant and investor money for building a network of anti-idling services at truck stops across the country. The company never made a profit.
The Securities and Exchange (SEC) order was issued on Tuesday, March 5, stating the company has 10 days to respond either by letter or in person at a hearing as to why they have failed to file their quarterly and annual reports since 2008.
If IdleAire fails to answer or appear at an administrative proceeding, the company may be deemed to be in default and their stock deregistered.
Even though the company has been defunct since 2008, an SEC official told Land Line recently it doesn’t mean that its stock can’t still be traded. The official said that the reason the SEC doesn’t prohibit the trading of a defunct company is because there are always willing buyers and sellers and the agency doesn’t want to get in their way until there is a trading suspension.
If the administrative law judge decides IdleAire has failed to comply with the securities laws and if the judge decided to revoke their registration, the SEC official said the broker-dealers will not be allowed to trade the stocks.
In the company’s last filing with the SEC in 2007, the company listed its largest shareholders, which included Goldman Sachs of Jersey City, NJ, with 17.9 percent of its stock; Randy Massey of Knoxville, TN, with 17.8 percent of its stock; A.C. Wilson, of Plains, TN, with 13.7 percent of its stock; and Jefferies & Co., of Jersey City, NJ, with 12 percent of its stock.
The day IdleAire initially filed for bankruptcy protection in 2008, it was reopened under the new name IdleAire Acquisition LLC, which was owned by six investment companies. That company also abruptly ceased operations in January 2010, leaving thousands of truck drivers with money on their IdleAire cards and nowhere to plug in and use its services. The services included providing heating and air conditioning and electrical outlets, as well as TV and Internet services.
However, IdleAire is not to be confused with a new company, IdleAir, owned by Convoy Solutions LLC, which was formed in 2011. The new company continues to differentiate itself from its former predecessors by crediting drivers for money they lost when the former company shut down and is focusing its services in key trucking corridors across the country with a less aggressive plan than its predecessors.
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