Ex-CEO's Trading Firm Lost $290M, SemGroup Says

Law360, New York (July 31, 2008, 12:00 AM EDT) -- SemGroup LP, the beleaguered oil distributor currently seeking $250 million in debtor-in-possession financing, reportedly lost $290 million through a trading firm linked to its former chief executive and failed to divulge the extent of the relationship to lenders.

In an affidavit filed July 22 in the U.S. Bankruptcy Court for the District of Delaware, SemGroup's acting Chief Executive Terry Ronan said the energy company's former Chief Executive Tom Kivisto owes the company $290 million in trading losses made through Westback Purchasing Company LLC, a firm he...
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