TULSA, Okla. and NEW YORK, July 20 // -- SemGroup, L.P. and a group composed of John Catsimatidis and certain individuals and entities associated with him announced today that they have reached an agreement that will end the litigation pending between them in Delaware and Oklahoma. The settlement agreement, which is subject to approval of the Delaware bankruptcy judge overseeing SemGroup's chapter 11 case, provides for the resolution of various outstanding issues.
As part of the agreement, Mr. Catsimatidis, and three other members of the Management Committee of SemGroup's general partner -- J. Nelson Happy, James Hansel, and Martin Bring -- will withdraw their objection to SemGroup's disclosure statement for its plan of reorganization and will support the company's reorganization plan. Additionally, Messrs. Catsimatidis, Happy, Hansel, and Bring will resign from the Management Committee effective as of the date of final judicial approval of the settlement.
Lastly, United Refining will purchase SemMaterials' interest in an asphalt marketing joint venture for a one-time payment of $3.9 million.
Matthew Coughlin is not a party to the settlement and will remain a member of the Management Committee. SemGroup plans to pursue its pending claims against Mr. Coughlin.
SemGroup, L.P., is a midstream service company that provides diversified services for end users and consumers of crude oil, natural gas, natural gas liquids and refined products. Services include purchasing, selling, processing, transporting, terminalling and storing energy. SemGroup serves customers in the United States, Canada, Mexico and Wales.