Catsimatidis Makes Bid for SemMaterials Assets

John Catsimatidis makes a bid for all of the assets of SemMaterials.
The bid is being considered by SemGroup, LLC, and no decision has been made about the disposition of the assets of the asphalt supply company.
“In response to SemGroup’s request for bids, I placed a substantial bid for all of the assets of SemMaterials,” said Catsimatidis. “My bid was not immediately accepted, and we are continuing our negotiations with SemGroup LLP.”
“Financing is available to me for the entire amount of my bid. However, my advisors believe I should obtain a $100 million increase in my open line of credit to ensure plenty of working capital is available to the company if crude oil prices spike again. It just wouldn’t be prudent to proceed to buy the assets without the assurance of the availability of adequate working capital.”
Catsimatidis controls 5 of the 9 seats on SemGroup‘s management committee.
“We are working hard to prepare a plan of reorganization for all of the company’s assets, including SemMaterials. I think an auction of SemMaterials’ assets was premature; the asphalt business should be part of the entire reorganized company,” Catsimatidis said.
“Because SemGroup insisted on proceeding with an auction, I was willing to participate and offer the highest and best bid. The sellers wanted to close the transaction by March 15, and I could not assure them that I could close the purchase before the end of the month. I intend to continue to negotiate with the sellers while putting together my plan for reorganizing the entire company,” Catsimatidis added.
SemGroup is a privately held midstream service company providing the energy industry the means to move products from the wellhead to the wholesale marketplace. SemGroup, L.P. provides diversified services for end users and consumers of crude oil, natural gas, natural gas liquids, refined products and asphalt. Services include purchasing, selling, processing, transporting, terminating and storing of product, and serves customers in the U.S., Canada, Mexico and Wales.
SemGroup had revenues of more than $14 billion in 2007 and employed more than 2,200 people worldwide. The company filed for protection under Chapter 11 of the U. S. Bankruptcy Code in July 2008.



Was this article helpful?

Related Articles

Leave A Comment?