SemGroup Files Bankruptcy Reorganization Plan
SemGroup, LP and certain of its subsidiaries today announced the filing of their Plan of Reorganization (the "Plan") and related Disclosure Statement (the "Disclosure Statement") with the U.S. Bankruptcy Court for the District of Delaware.
"The filing of the plan and disclosure statement is a major milestone in SemGroup's restructuring," said Terry Ronan, the company's president and chief executive. "The plan will allow SemGroup to exit bankruptcy with a stronger balance sheet, reduced debt, and more efficient operations to ensure the company remains a leader in the gathering, storage, transportation and distribution of crude oil, refined petroleum products, and natural gas."
Key provisions of the Company's Plan, as filed with the Bankruptcy Court, include:
- Reorganization of all business units with the exception of the domestic operations of SemMaterials, the assets of which have previously been sold in a series of transactions.
- Creditors will own substantially all of the equity of the reorganized company.
- $500 million senior secured revolving credit facility to be provided by a subset of the Company's Pre-Petition Lenders. Borrowings under the facility will provide working capital to the company once it exits Chapter 11 protection, Letters of Credit, and allow the Company to re-enter the crude marketing business.
- Emergence from Chapter 11 as a publicly traded company.
- The creation and funding of a Litigation Trust for the purpose of continuing to pursue certain claims of the estate.
- Issuance of $300 million in New Secured Notes.
- Refinancing of an existing $120 million secured facility used to partially fund construction of the White Cliffs pipeline.
- The Plan contemplates the Canadian subsidiaries will remain a part of the reorganized company. Concurrent with the U.S. proceedings, the Canadian subsidiaries are undergoing reorganization in a Canadian court.
- The Company expects to maintain its headquarters in Tulsa, Oklahoma.
"I would like to thank all of our talented employees who have worked so hard to make this plan possible and ensure SemGroup's place atop the industry for years to come," Ronan said. "While we have accomplished much, there's still a lot of work ahead of us. We all need to remain focused to make the restructuring a success."