NEW YORK (AP) - Red Apple Group Chairman John Catsimatidis says he will reorganize bankrupt SemGroup LP, a privately held oil and gas transportation and storage provider.
Tulsa-based SemGroup filed for bankruptcy in July and estimated a loss of about $2.4 billion, due to bad bets on oil futures contracts. The company planned to liquidate most of its assets.
Red Apple Group is a privately held company that refines petroleum, owns real estate, aviation assets and a New York City supermarket chain.
Catsimatidis says he has obtained five of the nine seats on SemGroup's management committee and plans to work with creditors on a reorganization plan that will enable the company to repay its
debts while preserving most of its 2,000 jobs currently at risk.
He says SemGroup has a tremendous portfolio of assets that can be revitalized with a renewed commitment to the company's core businesses.
(Copyright 2008 by The Associated Press. All Rights Reserved.)