After failing to file periodic reports with the Securities and Exchange Commission for nearly five years, the commission’s chief administrative law judge, Brenda P. Murray, has ruled the now-defunct IdleAire Technologies, which was headquartered in Knoxville, TN, can no longer sell shares of its stock. The company is a previous incarnation of a well known anti-idling service that is popular with truckers.
Judge Murray’s decision was released by the SEC on Monday, April 1, after IdleAire failed to file answers to the SEC’s Order Instituting Administrative Proceedings or OIP issued on March 5 and did not participate in a prehearing conference on March 28.
Even though the company has been shut down since 2008, an SEC official told Land Line recently it doesn’t mean that its stock can’t still be traded until a deregistration order is issued.
Now, broker-dealers will no longer be allowed to trade IdleAire’s stocks.
However, IdleAire is not to be confused with a new company, IdleAir, which re-emerged under a new name and new management in 2011. The new company is owned by Convoy Solutions LLC.
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 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.
The new IdleAir 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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