Things seem to be looking up for the biggest bankruptcy in the U.S. so far this year. SemGroup LP, the $6.1 billion-in-assets (and $7.5 billion-in-liabilities) oil transporter, which filed for Chapter 11 on July 22, on Tuesday obtained a
$250 million debtor-in-possession loan from Bank of America NA that requires the company to sell its assets under a timeline set by BofA and others participating in the DIP.
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Though the timeline has yet to be set in stone, the six-month postpetition loan can be extended another three months if "certain conditions relating to the sale of the debtor's assets have been met," according to the loan's term sheet. So SemGroup will certainly have to move quickly to dispose of its assets.
The good news is there has been "no scarcity of parties interested," according to The Journal Record. The story quotes a SemGroup spokesman, who says "discussions are already underway" and "the company has gotten a lot of calls from people," even on SemGroup's media line.
Meanwhile, the Tulsa World reported on Wednesday that the stock of SemGroup's nonbankrupt, publicly traded unit, SemGroup Energy Partners LP, is on the rebound since the parent's Chapter 11 filing.
Indeed, after the bankruptcy was filed, a source told The Deal's David Carey that, despite its parent's troubles, the affiliated master limited partnership remains a sound business. - John Blakeley
