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Altered Sprinter
12-22-2008, 08:41 PM
11009
Better watch out and fill up today another one bites the dust
Lower oil prices are now reflecting across the N/American sector Ethanol plants shuttering too expensive to produce. Alberta Canada: 10% of the Oil produced from the oil sands concept goes directly to the USA,with Shell, Chevron cutting back on production new projects stalled, smaller oil operators closed for good. Oil costs more to produce than it retails for.
Flying J has the large older Shell refinery in Bakersfield if this one shutters, it will create a major problem with a rippling down down effect on it's immediate economy.
Richard.
11010

kkanuck
12-22-2008, 11:17 PM
You are kidding me!

jdcaples
12-22-2008, 11:31 PM
Maybe you'll believe the Wall Street Journal?

Altered Sprinter
12-23-2008, 02:39 AM
You are kidding me!
I wish it was a joke, but no this is fact.
Given the latest reports from those who have filed for chapter 11 and pending:hmmm: for 2009 you need not know about.

Semcrude Texas 3.2 Bn July 22... Woodward -based oil drilling: Canadian Jedoil 40 percent of Alberta's problems are not cost related, as such but from future trading speculation that sent them down. no credit available as to Risk-factoring.. no liquid assets, that match equity value.
New 2009 Environmental regulations come into force, and higher royalty prices will force more closure in Alberta, as to the economic downturn.

November 3rd Vera Sun closes 14 Ethanol plants, so much for GW and the subsidized corn markets, to grow economy and in part to take the reliance of imported oils out of the equation. OK it's also due to a world wide slow down, 2009 watch them run to the Capital for a bailout. Hell everyone else is.

No I'm not joking at all.
Franklin Dolano Roosevelt on Banking March 13th 1933 attempted to repair the banking system after the banks collapse driven from the wall-St stock crash, which in turn led to a mass bank run for cash withdrawal. He made three mistakes JP Morgan was one.

They used to tell me! We were building a dream, for peace and Glory ahead.
We used to plough the fields, and grow our food. We built a railway and made the trains work, We built office-works from steel and rivets, mortar and lime, we had food and money to spare.

Along came an actor and he built a wall of divide by deregulating the banking and financial institutions designed to protect us from the 'Great depression' . Roosevelt's idea was for an honest Government, and financial system.

The wall built Speculated Energy futures, and our banks threw away the basic foundations of the 101 principles. encouraged by the two bush administrations to grow and prosper, by mis- guidance,lies, corruption and greed.

Now Brother can you spare a dime:eek:.... Fourth stage! The collapse of the credit card.
Reduce Credit card debt to 40% per card to retain creditability.for loans.

At the moment Shell others too, have booked super tankers on the sea to prevent delivery, not to profit so much but as to Future Marketers on the open free trade spot markets, are running out of inventory space, to park the oil for holding inventory.'No Takers' The result is the rapid drop of oil prices, it's not Opec, It's not Russia, It's not China, It's not India. It's not Europe, but the speculators playing Russian Roulette with the World, and Russia is hurting the most.

The object of the game is to pick up assets, for nickels and dimes. Just watch the oil companies in the first Q1-2-3
Richard.

sikwan
12-23-2008, 04:29 AM
I figure it's only a Chapter 11 Bankruptcy reorganization. Unless you're a shareholder or have loaned Flying J some money, there's really nothing to be worried about and I bet they'll still be in business.

Mostly every Flying J that we passed along our cross country road trip, it was filled with customers.

kkanuck
12-23-2008, 10:52 PM
I figure it's only a Chapter 11 Bankruptcy reorganization. Unless you're a shareholder or have loaned Flying J some money, there's really nothing to be worried about and I bet they'll still be in business.

Mostly every Flying J that we passed along our cross country road trip, it was filled with customers.

They are screwing all their suppliers, employees, and getting debt obligations chopped one way or another, so many will be hurt regardless.

jdcaples
12-23-2008, 11:37 PM
I used to work IT for a US Bankruptcy Court in the 9th Circuit.

US Bankruptcy Codes were an alternative to debtor's prison, or so they told me at new hire orientation.

Chapter 11s (reorgs), more often than otherwise, convert to Chapter 7s (liquidation)... although not with large capital companies like airlines.

I don't recall a dollar threshhold, a statistical demarcation, for that tendency.

Certainly in Western Washington - actually, the 9th Circuit in general - while a court employee, I noticed considerably more conversions of 11 filings to 7 procedings; more than any other conversion and there were way more 11 to 7 conversions than "successful" Chapter 11s.

This'll be interesting to watch; sad too.

-Jon

Altered Sprinter
12-24-2008, 12:20 AM
Consider the way the loop works 2005 Bankruptcy laws were redesigned for consumers the public Ch 13 the retention of home and car+ Corporations picked up on this so they followed suite...A scam ..And yes once a defaulter that failed to pay on a bill of exchange went to prison sorry They closed Tasmania off not in our back yard any more:smilewink:

Flying J's credit-line was pulled when the loans were called in from the BOA and Meryl followed the path of calling in the loans as The Big West Refinery Arm "defaulted on payments" along with the loss of revenue projections for 2008-09 from the Big horn 700 mile pipeline Down in Texas. The 200 travel plazas are an issue with ongoing court cases ,where there are just one too many problems associated with the developments, as to the assets and it's value worth.

liquidity becomes the credit crunch as to operating profitably , Flying J is in debt for more than it's worth.

What bought it down was Fiance and pending court actions as to the Bakersfield refinery December the 8th 2008 .

Environmental practices from releasing dangerous toxins into the atmosphere.
This factory originally built in 1932 for the Mohawk corp has a checkered history, it was to be shuttered in 2003 by Shell . as to being just to old to upgrade, The California Federal attorney intervened, an unusual move by a Government regulator to have it sold on, so Flying J purchased it in 2005.

There are legal ramifications still pending practices of corporate corruption involved, as to persuading the retention of an existing plant, that is no longer compliant to the Californian clean air act, or as to the environmental conditions of the actual plant itself.

Environmental exemptions by using the outdated pollution credits, has landed this company Big-West California in court again as to a class action suite bought against it from residential interests, the same claim as bought against BP for Bakersfield with dumping waste into the lakes, using the pollution tax credits, as an escape clause.

Getting the banks to refinance is one thing but you can bet they will not get any credit from BP or shell for supply, in the future.

Flying J has to restore credibility, show responsibility to forwarding trust, and bring itself into compliance before a structured plan can proceed for finance, not an easy call today.

There are other parties that have been effected by Flying J's action that will not be paid for monies owed, this places these suppliers in serious jeopardy as to jobs being lost and as to credit being lost to those who are either directly, or indirectly effected by the irresponsible financial actions of the firm, that led it to file for the proceeding stage of Ch 11.
Richard

jdcaples
12-30-2008, 11:06 PM
Things have come a long way - in terms of info sharing - since I worked for the courts....

Attached is a "Notice of Reclamation Demand" from Pepsi against Flying J.

Also attached is a list of creditors provided by Flying J (Creditor is the opposite of Debtor, which may or may not be obvious to the casual reader).


Brought to you by Epiqsystems.com....

11058


11057

11056


-Jon

sikwan
12-30-2008, 11:17 PM
Interesting stuff, Jon. :hmmm:

When...does it mean Pepsi can come and reclaim their stuff?

Altered Sprinter
12-30-2008, 11:21 PM
It's an excellent reference as to the real life facts of who gets hurt the most, the manufactures and suppliers who forward credit in good faith, especially the small family based owned corporations of business operations, who can least afford a loss from a large singular operation.
Flying J wipes out it's debt to many of the most critical suppliers, many who can not refinance a credit line.
So who protects them? Arr! sorry your an unsecured creditor.It's reaching the stage where no one will give these larger corporations credit unless it's COD. or a Gov bailout which makes no cents.
Richard.

jdcaples
12-30-2008, 11:34 PM
Interesting stuff, Jon. :hmmm:

When...does it mean Pepsi can come and reclaim their stuff?

Oh, that's pressing the limits of my understanding of the code.

My exposure to procedure was limited.... I was strictly tech and anything I know about the code was not something I practiced as part of my job.... I was the first unix pro hired to help manage a new unix system for bankruptcy data collection/automation stuff.

Anyway, from the conversations I picked up on the job, this is my interpretation: that Pepsi thinks Flying J pretended to be a worthy credit risk (getting Pepsi products on credit, payment due later) when they knew for a fact they (Flying J) we're nearing bankruptcy with no intention of paying Pepsi, but selling Pepsi products, just the same.

I worked for the Courts from '87 to late '99 (technically into 2000 because I had accued a lot of vacation and it was easier to "stay on the books"). The laws have changed a lot since, but back then, I'd have said "Pepsi won't get anything."


-Jon

PS: If Pepsi did reclaim their stuff, the US Trustee (the cops) would slap someone with a fine and possibly jail time.

avid
12-31-2008, 02:15 AM
And to think, I just received my Flying J rewards card yesterday. :laughing: