September 23, 2010 / 4:44 PM / 9 years ago

UPDATE 1-SemGroup's former execs to pay $30 mln to settle suit

* Settlement without admission of wrongdoing

* Pact resolves charges against former CEO Kivisto, others

Sept 23 (Reuters) - Former executives of SemGroup agreed to pay $30 million to settle a 2009 lawsuit related to unauthorized sale of crude oil options that led to the company’s bankruptcy.

The defendants agreed for the settlement without any admission of wrongdoing or liability, litigation trustee Bettina Whyte said in court papers on Wednesday.

Whyte reached a settlement with members of the company’s former management, including former Chief Executive Thomas Kivisto.

The settlement fully resolves allegations against Kivisto, Gregory Wallace, Brent Cooper, Kevin Foxx and Alex Stallings, all members of the company’s former management.

SemGroup, once the 14th-largest privately held U.S. company and parent of SemGroup Energy Partners LP, collapsed in 2008 after Kivisto lost billions of dollars on sales of crude oil options.

Its reorganization plan was confirmed in October 2009.

The defendants faced claims for fraudulent transfer, breach of fiduciary duty, breach of contract and unjust enrichment in a lawsuit originally filed by the company’s unsecured creditors in February, 2009.

It was taken over by the litigation trust in November, 2009, after SemGroup exited bankruptcy.

The deal is yet to be approved by the bankruptcy court. (Reporting by Santosh Nadgir in Bangalore)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below