IdleAire Locations Open and Expected to Remain Open
Friday, May 16, 2008
IdleAire locations are operating and serving customers and are expected to remain open and serving customers, the company said today.
Company officials also emphasized that IdleAire Technologies Corporation has filed for Chapter 11 reorganization, not for Chapter 7 liquidation, noting there was nothing in the company’s petition to the court indicating any plans for cessation of services.
IdleAire has secured a $25 million Debtor-in-Possession credit facility to provide funding for the company as it works through the Chapter 11 reorganization process. The Chapter 11 process will allow the company the opportunity to restructure its debt and emerge under new ownership on a more financially solid foundation.
“A Chapter 11 filing is an unfortunate action,” said company officials, “but it is 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.”
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.
IdleAire Advanced Travel Center Electrification® (ATE) provides in-cab heating and air conditioning, electrical outlets and a range of communications and entertainment options to long-haul drivers at travel centers around the nation.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to our expected business outlook, anticipated financial and operating results, our business strategy and means to implement the strategy, our objectives, the amount and timing of capital expenditures, the likelihood of our success in expanding our business, financing plans, budgets, and working capital needs and sources of liquidity, which involve risks and uncertainties that cannot be predicted or quantified, and consequently, actual results may differ materially from those expressed or implied herein. Such risks and uncertainties include, but are not limited to, demand and utilization of our ATE systems, the number of parking spaces and locations we expect to install, competition, the seasonal nature of our business, economic conditions, regulatory matters, litigation, our negotiation of agreements with third parties and other risks described from time to time in our filings with the Securities and Exchange Commission. In addition, construction projects such as the rollout of our ATE system entail significant risks, including local building permit approval, shortages of materials or skilled labor, dependence on third party electrical power and telecommunications providers, unforeseen regulatory problems, work stoppages, weather interference, and unanticipated cost increases. There can be no assurance that construction commitments will be met. All forward-looking statements are based on our current expectations about future events.
Contact: Jim Price, (865) 342-3640
John Doty, (865) 342-3659
Source: IdleAire Technologies Corporation
