IdleAire Technologies is looking for a new start. The company, which provides idle-reduction technology at truckstops, filed for Chapter 11 bankruptcy Monday after exhausting months of efforts to obtain alternative financing.
The Knoxville, Tenn.-based company filed Chapter 11 documents Monday, May 12, in U.S. Bankruptcy Court in Wilmington, Del., where the company is incorporated. The company is expected to continue offering its services during the reorganization. IdleAire systems, located at 130 truckstops and terminals, provide heating and air conditioning, Internet, electrical power, television and other services for an hourly charge via large overhead truss systems.
Founded in 2000, IdleAire has never been profitable. Expansion and higher utilization rates of its network of "Advanced Truckstop Electrification" systems are needed for the company to be profitable, according to the company's annual report filed in April.
IdleAire had a net loss of $93.44 million in 2007 on revenues of $37.23 million, compared to a net loss of $60 million in 2006 on revenues of $13.98 million. So even though revenues were up 166 percent in 2007, the company lost about 50 percent more money than the year before.
A deal was finalized in late April for up to $25 million in credit from unnamed lenders, coordinated by Wells Fargo, to help the company keep functioning during the reorganization.
The Knoxville, Tenn.-based company filed Chapter 11 documents Monday, May 12, in U.S. Bankruptcy Court in Wilmington, Del., where the company is incorporated. The company is expected to continue offering its services during the reorganization. IdleAire systems, located at 130 truckstops and terminals, provide heating and air conditioning, Internet, electrical power, television and other services for an hourly charge via large overhead truss systems.
Founded in 2000, IdleAire has never been profitable. Expansion and higher utilization rates of its network of "Advanced Truckstop Electrification" systems are needed for the company to be profitable, according to the company's annual report filed in April.
IdleAire had a net loss of $93.44 million in 2007 on revenues of $37.23 million, compared to a net loss of $60 million in 2006 on revenues of $13.98 million. So even though revenues were up 166 percent in 2007, the company lost about 50 percent more money than the year before.
A deal was finalized in late April for up to $25 million in credit from unnamed lenders, coordinated by Wells Fargo, to help the company keep functioning during the reorganization.
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