Newspaper article THE JOURNAL RECORD

SemGroup LP Founder, Former CEO Sued for $12.8 Million by Bank of America in Tulsa Federal Court

Newspaper article THE JOURNAL RECORD

SemGroup LP Founder, Former CEO Sued for $12.8 Million by Bank of America in Tulsa Federal Court

Article excerpt

SemGroup LP founder and former CEO Tom Kivisto and a Kivisto trust were sued for $12.8 million plus interest Friday by Bank of America.

The lawsuit involves a $15 million loan to the trust that was guaranteed by Kivisto and secured by the trust's limited partnership interest in SemGroup LP, according to the filing.

The complaint, filed in Tulsa federal court, says the loan was taken out in May 2006. On May 26 of this year, its maturity date was extended to Aug. 24.

The complaint mentions the recent financial difficulties of SemGroup, reports that Kivisto was replaced as president and CEO and that SemGroup was considering bankruptcy.

It also notes that stock prices for SemGroup's public subsidiary, SemGroup Energy Partners, fell 51.8 percent in one day.

"These events qualify as a material adverse change relating to the value of the security interest in SemGroup and defendant Kivisto," the document states.

On Tuesday, SemGroup LP and 24 subsidiaries filed for Chapter 11 bankruptcy reorganization. …

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