Oil refiner Flying J. files for bankruptcy

Flying J. Inc., a major independent oil refiner, filed for bankruptcy protection Monday, blaming the sharp decline in oil prices and turmoil in the credit markets for its financial woes, the Wall Street Journal reported.

Flying J., one of the 20 largest privately owned companies in the U.S., with sales of more than $16.2 billion in 2007, sought Chapter 11 protection in U.S. Bankruptcy Court in Wilmington, Del.

In court papers, Flying J. Chief Executive J. Phillip Adams blamed the company’s financial troubles on “the recent precipitous drop” in oil and gas prices.

In addition to its refining and distribution businesses, Flying J. operates more than 250 travel plazas and gas stations throughout the U.S. and Canada and has interests in online banking, truck leasing and payroll services. The nearest company-owned Flying J. travel plaza is in Tacoma.

The bankruptcy filing includes only Flying J. and its Big West refining and Longhorn Pipeline units.

The owner of two Spokane Flying J.s, Dan Alsaker, said his operations are solvent, in part because his company doesn’t rely entirely on fuel sales.

RICHMOND, Va.

Circuit City gets loan to keep operating

Circuit City Stores Inc. on Monday received final approval for $1.1 billion in financing to keep operating while the nation’s second-biggest electronics retailer is in Chapter 11 bankruptcy protection.

U.S. Bankruptcy Judge Kevin Huennekens approved the debtor-in-possession loans at a hearing in Richmond. The financing, which replaces a $1.3 billion asset-backed loan the company had been using, will be used to stock merchandise and pay employees.

Richmond, Va.-based Circuit City filed for bankruptcy protection last month as it faced pressure from vendors and consumers who aren’t spending. Its Canadian operations filed for similar protection.

Gregg Galardi, an attorney for Circuit City, said that since filing for bankruptcy, the company’s sales have been hurt by the weak consumer spending environment and are down between 40 percent and 50 percent.

WASHINGTON

Stimulus duties overtake IRS collections tasks

The IRS says its collections from audits and other reviews fell this year for the first time in a decade as the agency focused more of its limited resources on ensuring that people got their economic stimulus checks.

Overall, collections dropped about 4.7 percent – to $56.4 billion for the fiscal year that just ended.

The drop occurred after what had been a record-setting year in 2007, which agency officials describe as an anomaly. In addition to its regular duties, the agency issued 117 million payments worth more than $95 billion as part of the federal economic stimulus program this spring, and it did so with about 2 percent fewer officers and agents conducting audits and other reviews.

From wire reports