* SemGroup, Catsimatidis Group agree to end litigation
* United Refining to purchase a SemGroup unit's venture
* 4 to resign from general partner's management committee
(Rewrites first paragraph; adds details about the Catsimatidis
NEW YORK, July 20 SemGroup LP [SEMGP.UL] said
on Monday that it had reached an agreement with a group led by
John Catsimatidis to support the oil and gas services company's
bankruptcy reorganization plan.
SemGroup also said it had agreed to sell its subsidiary's
interest in an asphalt marketing joint venture to United
Refining Co [RAPPLU.UL].
John Catsimatidis, who is the head of United Refining, and
three other members of the management committee of SemGroup's
general partner will withdraw their earlier objection to the
reorganization plan. Catsimatidis has been using the management
committee to put forward his own plan of reorganization.
In addition, SemGroup said United Refining plans to
purchase its interest in the joint venture for a one-time
payment of $3.9 million.
The agreements were announced as a hearing was set to begin
in U.S. Bankruptcy Court in Delaware on SemGroup's disclosure
statement, which must be approved to clear the way for it to
emerge from bankruptcy.
As part of the agreement, Catsimatidis and SemGroup will
end litigation between the two in Oklahoma and Delaware.
Catsimatidis, J. Nelson Happy, James Hansel and Martin
Bring will resign from the general partner's management
committee when the Delaware bankruptcy judge overseeing the
case approves their agreement.
SemGroup, which sells, processes, transports and stores
energy for users of crude oil, natural gas and refined
products, was the 14th-largest privately held U.S. company when
it filed for bankruptcy protection in July 2008 after
sustaining $3.2 billion in losses due to bad bets on oil
The case is In re: SemCrude LP, U.S. Bankruptcy Court,
District of Delaware, No. 08-11525.
(Reporting by Chelsea Emery and Tom Hals; Editing by John
Wallace and Lisa Von Ahn)