IdleAire Files Chapter 11; Stations to Remain Open
IdleAire Technologies Corp., a designer of anti-idling systems for long-haul trucks at truck stops, has filed for Chapter 11 bankruptcy, but its facilities will remain open to truckers, the company said Friday.
The Knoxville, Tenn.-based said it secured a $25 million debtor-in-possession credit facility to provide funding for the company as it works through the Chapter 11 reorganization process, which it said “will allow the company the opportunity to restructure its debt and emerge under new ownership on a more financially solid foundation.”
IdleAire has 131 locations in 34 states. Last year, nearly 200,000 individual long-haul drivers made 1.5 million visits to IdleAire sites, conserving over 15 million gallons of fuel and eliminating over 360 million pounds of diesel emissions, mostly carbon dioxide, the company said.
“A Chapter 11 filing is an unfortunate action,” the company said in a statement, but said it was “necessary to restructure our debt and recapitalize the company to continue to serve professional long-haul drivers and trucking fleets across the country. We expect operations will continue as we go through this process and we expect to end up financially stronger than ever.”
Founded in 2000, IdleAire was largely funded by private equity placements with about $114 million from investors, Bloomberg reported. Its equity, although not publicly traded, is held by more than 3,000 shareholders.
As of the end of last year, IdleAire had collected $25.1 million of the $55.6 million awarded in government grants issued by agencies seeking to encourage greenhouse gas reduction and fuel-saving technologies, Bloomberg reported.
