Oct. 14--Flying J Inc. has entered into a preliminary merger agreement with Pilot Travel Centers LLC, with final papers to be signed within the next few weeks.

The Flying J Travel Center at the intersection of South Avenue and Highway 99W in Corning is included in this merger.

Peter Hill, spokesperson for Flying J, said once the final merger papers are signed, the agreement will be placed before the bankruptcy court which is handling Flying J's Chapter 11 case.

If the court approves, the ownership transfer should take place within a couple of months.

Flying J filed bankruptcy with the U.S. Bankruptcy Court in Delaware in December, citing the drop in the price of oil and the lack of available financing from its traditional sources due to the disrupted credit markets.

Under the terms of the Letter of Intent recently filed with the bankruptcy court, the value indicated would allow all Flying J creditor obligations to be paid in full, and Pilot also has agreed to provide $100 million in financing for Flying J's operations, said Hill.

"After a careful and exhaustive review of the alternatives available, we have concluded that a merger with Pilot represents the best possible outcome for Flying J, our creditors, our customers, and our employees," said Crystal Call Maggelet, chairman of the board of Flying J. "This transaction will allow us to emerge from the bankruptcy process relatively quickly thereafter and to start a new chapter in the Flying J story."

Hill said Flying J will retain its name and, at this point, it is his understanding there will be no specific changes to Flying J sites and no "wholesale re-application process for current Flying J employees."

"That does not mean there won't be any changes, but currently there is nothing specific in the works," Hill said.

Cynthia Moxley, spokeswoman for Pilot, said because the merger is not complete she could not comment on the subject of Flying J site closures, employee retention, or the future of the Flying J "Country Market" restaurants.

Jimmy Haslam, chief executive officer of Pilot, said in a statement, "We look forward to working closely with Flying J and its employees during the Chapter 11 emergence process, and as we take the next steps of a new beginning for both of our companies."

According to Corning City Manager Steve Kimbrough, Flying J, which opened locally in December 2005, is one of the top 10 retail sales tax generators in the city.

"It is very important to the city's economy and sales tax income with its very high volume of service," he said.