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SemGroup general partner claims plan drawn up without its consent
By Caroline Salls
Pittsburgh, June 18 - SemGroup, LP's proposed disclosure statement drew an objection Wednesday from members of the management committee of sole general partner SemGroup, GP, LLC, who argued that the company's plan of reorganization and disclosure statement were filed without their consent, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.
The objection was filed by a majority of the committee members, including John A. Catsimatidis, Matthew F. Coughlin, III, Martin R. Bring, J. Nelson Happy, and James C. Hansel.
According to the objection, approval of the plan and disclosure statement must be denied because "neither has been duly authorized by the management committee, which has the sole and exclusive right to manage SemGroup, LP and its affairs."
The committee directed SemGroup's senior officers in January to report at least weekly on progress on any plan, proposals or term sheets, according to the objection.
The senior officers were also directed to seek advance approval from the committee before filing any motions related to a reorganization plan and have management and employees make themselves available to provide information and receive guidance on the operations of the company and the development of any reorganization plan.
"The debtors' senior officers and professionals filed the plan and disclosure statement with the mistaken view that they received a management committee grant of perpetual, limitless and irrevocable authority to exercise ultimate and absolute control over the debtors and their Chapter 11 affairs," the committee members said in the objection.
SemGroup, a Tulsa, Okla., privately held limited partnership that provides midstream services to North America's energy industry, filed for bankruptcy on July 22, 2008. Its Chapter 11 case number is 08-11525.
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