Wednesday, January 21, 2009

Keep it in the family

From the Salt Lake Tribune:

Flying J CEO is replaced by founder's daughter

By Paul Beebe
The Salt Lake Tribune

Posted: 01/20/2009 04:57:00 PM MST

Flying J's longtime president and chief executive officer has resigned
abruptly, less than a month after the oil company was forced to file for
bankruptcy.
J. Phillip Adams was replaced by Crystal Call Maggelet, chairman
of the board and daughter of Flying J founder Jay Call, the company announced
Tuesday.
Last month, Ogden-based Flying J and two of its subsidiariess filed for Chapter 11 bankruptcy protection, citing a steep drop in oil prices and the lack of available financing tied to disruptions in the credit markets.
Adams was unavailable for comment Tuesday. In a brief interview last month, he said the decision to seek bankruptcy protection was painful for Flying J, which has
grown to be one of the 20 largest private companies in the United States.
Peter Hill, a Flying J spokesman, said the company would not discuss the
reasons for Adams's departure.
In a statement, the company thanked Adams for his contributions during his 26-year career and wished him well.
"Given the challenges our company is facing, however, it is essential that we look
forward," Maggelet said in the statement.
Maggelet has served on Flying J's board for more than 20 years. With her husband she owns a regional chain of hotels called Crystal Inn and has a masters of business administration degree from Harvard University.
Flying J's Dec. 22 bankruptcy applies to it and the company's Big West refining and Longhorn pipeline subsidiaries. No other subsidiaries, including its chain of more than 250 travel centers, are involved.
None of the company's 16,000 employees has been laid off.
Flying J is one of the first energy companies to file for bankruptcy after an extraordinary year that saw crude oil prices streak to a record high of $147 a barrel in July, only to fall to under $40 by the close of 2008.
At the same time, the U.S. had entered a deep recession sparked by falling real estate prices that led banks to freeze most lending.
In the statement, Maggelet said Flying J is "receiving tremendous counsel and support from our team of restructuring experts."
She said John Boken is the company's new chief restructuring officer.
Boken is a managing director at New York-based Kroll Zolfo Cooper. He specializes in providing restructuring and crisis management services to financially distressed
companies.

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