Catsimatidis Works Toward SemGroup Reorganization

John A. Catsimatidis to meet SemGroup senior management Monday to begin reorganization of the company.
“We have been reaching out to obtain input from SemGroup’s management team and certain of its creditors,” said Catsimatidis, who is chairman of the New York-based Red Apple Group. “Although I have not yet had any discussions with Bank of America, in its capacity as Administrative Agent for the Senior Secured Lenders, it has been stated to me that the bank will consider with its lender group any proposal that I make.”
Catsimatidis said on Dec. 15 that he obtained five of the nine seats on SemGroup GP, LLC’s Management Committee, the equivalent of SemGroup L. P.’s board of directors.
Catsimatidis will seek input of management and the company’s restructuring professionals as a part of the process of putting together a reorganization plan on behalf of the company.
“We are working toward creating a consensual plan acceptable to all parties to the proceeding,” Catsimatidis said. “We intend to have a preliminary plan ready for consideration in January.”
SemGroup, a privately held midstream service company, moves products from the wellhead to the wholesale marketplace. SemGroup 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, terminaling and storing of product. SemGroup serves customers in the United States, Canada, Mexico, Wales, Switzerland and Vietnam.
SemGroup reported revenues of more than $14 billion in 2007 and employed more than 2,200 worldwide. SemGroup entered Chapter 11 on July 22.

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