Flying J Sells Off Insurance Arm to Raise Cash

In an effort to raise some cash to come out of bankruptcy, Flying J Inc. has sold its insurance subsidiary to the Buckner Co., a Salt Lake City, Utah-based insurance brokerage firm
, according to The Salt Lake Tribune. The deal will be official Jan. 1, the publication reported.

In Dec. 2008, Flying J announced plans to reorganize under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court in Delaware, in an effort to address near-term liquidity needs brought about by the then-decline in oil prices and disruption in the credit markets.

In Aug. 2009, a bankruptcy court approved Flying J's request to merge with Pilot Travel Centers, given that Flying J would dismiss its antitrust litigation against Pilot.

Selling off Flying J Insurance Services is the company's latest attempt to drum up some cash flow. The insurance arm collects about $25 million of insurance premiums per year, The Salt Lake Tribune reported.