Thursday, August 14, 2008

US Trustee Program Requests Authorization to Investigate SemGroup

The Office of the United States Trustee program, a section of the Justice Department, has requested authorization to look into SemGroup’s bankruptcy filing on the basis that fraudulent trading could have caused the collapse of the company. As reported in this article from Reuters, SemGroup, had filed bankruptcy on July 22nd claiming a $3.2 billion loss on energy futures and derivatives trades. In an official document Roberta DeAngelis, from the US Trustees office stated:

"The dearth of information available regarding the trading strategy and its impact upon the value of the debtor's businesses has caused significant unrest and concern among the debtor's customers, suppliers, lenders and investors"

The official word from SemGroup is that they are willing to cooperate completely with the investigation. This, however, is not the only investigation that is underway for the company. Federal Investigators are already checking into the matter of whether or not proper disclosure was made to investors regarding liquidity issues of the subsidiary group SemGroup Energy Partners LP.

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