SemGroup Receives Court Approval for $150M Interim Debtor-in-Possession Financing to Help Fund Operations During Chapter 11 Process

TULSA, Okla.--(BUSINESS WIRE)--SemGroup L.P. said today that the U.S. Bankruptcy Court for the District of Delaware has approved a $150 million interim debtor-in-possession (DIP) financing, which will be provided by a group of banks led by Bank of America. The interim funding will be used to fund letters of credit to ensure the return of terms with certain product and service suppliers. The company is working with the lenders to finalize the revised order and expect to present the final order to the Court in an expedited fashion.

A final hearing to consider the balance of the $250 million DIP financing is scheduled for August 18, 2008.

“Obtaining this interim DIP financing is an important step forward in our Chapter 11 process,” said Terry Ronan, SemGroup acting president and CEO. “The additional reassurance it provides to our creditors and employees will be essential in our ability to execute the plan we have created to maximize value for creditors.”

SemGroup believes the best alternative to maximize value for creditors is to undertake a sales process that will transition the company’s businesses to well-established companies that can carry forward SemGroup’s mission. “We have already received significant interest in our assets because of our talented and experienced employees, unique industry position, expansive customer base and premiere service capabilities," Ronan said.

SemGroup and certain of its North American subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code on July 22, 2008.

About SemGroup

SemGroup, L.P., is a midstream service company providing the energy industry means to move products from the wellhead to the wholesale marketplace. SemGroup provides diversified services for end users and consumers of crude oil, natural gas, natural gas liquids, refined products and asphalt. Services include purchasing, selling, processing, transporting, terminaling and storing energy. SemGroup serves customers in the United States, Canada, Mexico, Wales, Switzerland and Vietnam.

Forward-Looking Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about SemGroup’s activities. Words such as “believe”, “anticipates”, “expects” and similar language are intended to identify such forward-looking statements. The statements are based upon management's current expectations, estimates and projections. They are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond the Company's control and are difficult to predict. Among the factors that could cause actual results to differ materially from those expressed or forecasted in any such forward-looking statements are the Company’s ability to secure Debtor-in-Possession financing (DIP); its ability to operate business as usual; its ability to maximize value for its creditors; and the potential adverse impact of the Chapter 11 filing on the Company’s liquidity or results of operations. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, SemGroup undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.