SemGroup ex-CEO tries reassurance
SemGroup ex-CEO tries reassurance

By The Associated Press

Published: July 29, 2008

TULSA — SemGroup LP co-founder Tom Kivisto this weekend attempted to reassure employees of the embattled company, after his removal as chief executive and president amid investigations by federal regulators and the U.S. Attorney's Office.

"Tulsa has always rebounded well when bad things happen to one of its corporate citizens,” Kivisto said Saturday at a news conference where he refused to take questions from the media.

"With an investigation under way, I cannot answer any of the pressing questions or comment on speculations regarding the SemGroup situation,” he said. A full transcript of his statement was published on the Web site of newspaper Tulsa World.

Kivisto added he believes "as the facts and truths surrounding this chain of events are revealed, the SemGroup employees will regain their trust in what they initially believed” about the organization.

The comments came one day after Bank of America Corp. sued Kivisto and his trust organization in Tulsa federal court for $12.8 million and interest unpaid on a 2006 loan.

Kivisto guaranteed that $15 million loan himself and through the Thomas L. Kivisto Trust's limited partnership interest in SemGroup, according to the complaint.

Other litigation has been filed by creditors and shareholders. Those complaints include allegations that subsidiaries defaulted on loans, used loan funds improperly or sold common stock earlier this year without warning investors about the cash shortage and debt load.

The privately held Tulsa energy trading, storage and transportation company filed for Chapter 11 bankruptcy protection on Tuesday in Delaware, as reports indicated SemGroup LP lost $2.4 billion on the oil futures market, $290 million of that by Kivisto himself.

Leaders of SemGroup Energy Partners, the only publicly traded portion of the complex group of firms, have vowed to fight on and diversify its oil and asphalt storage and trading operations.

SemGroup Energy Partners LP was not part of the bankruptcy petition, but it reportedly gets about 80 percent of its revenue through dealings with its parent company.

The U.S. Securities and Exchange Commission and federal prosecutors have alerted executives that they want to look into the public company's documents and disclosures about the parent company's problems.

On Saturday, Kivisto said his "biggest concern has been — and will be — for the hardworking SemGroup family of employees who were the reason for SemGroup's unprecedented growth and success.”

He also said his family remains committed to the Tulsa community.

SemGroup and the Tom and Julie Kivisto Family Foundation have been strong supporters of many organizations, including many involved in the arts.

"I am a strong proponent of both personal and corporate giving to the local community. Despite SemGroup's news, this has not changed for me personally,” Kivisto said.

"Tulsa has never been, and never will be, built on a single corporation,” he said. "I expect great things for Tulsa in the immediate future, as well as the years to come.”

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