SemGroup’s General Partner Sues Ronan

SemGroup GP LLC files a complaint in the U.S. District Court for the Northern District of Oklahoma against Terrance Ronan the current chief executive officer of SemGroup, LP.
The complaint seeks a declaratory judgment that the Management Committee of SGGP has the authority to perform its governance role and fiduciary duties, and also seeks damages for breach of the loyalty owed by Ronan under Oklahoma law to SGGP. SGGP is the general partner of SemGroup, L.P.
In its complaint, SGGP states that Ronan has failed to comply with resolutions of the Management Committee adopted on July 21, 2008 and January 22, 2009, and that the Management Committee has encountered “significant resistance” from Ronan to the Management Committee’s efforts to exercise governance powers to oversee and manage the officers of SemGroup, L.P. in its restructuring efforts.
“We have continued to act in good faith and we have made every effort to reorganize SemGroup LP. Regrettably, Terry Ronan has been a roadblock to our efforts. We fully intend to do everything in our power to adopt a plan that will reorganize SemGroup LP and save jobs throughout the company,” said New York investor John A. Catsimatidis, who heads the Management Committee of SGGP. “We are seeking a court order that will establish the authority of SGGP’s Management Committee to properly supervise the Company and the reorganization process. Presently, SemGroup, L.P. is operating without the proper authority and supervision of the Management Committee. To date, the results of the situation have been disappointing. The Management Committee wants to take immediate action to promote the best interests of all of SemGroup’s stakeholders.”

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