NegativeWorkingCapital

Things That Go BOOM! in the Night: SemGroup Energy

"It isn't SGLP that went Bankrupt it is the MLP, Semgroup Energy Parnters. Article is misleading! "

Incorrect.

SemGroup L.P. and multiple subsidiaries filed for bankruptcy protection. SemGroup L.P. owned the general partner of SemGroup Energy Partners L.P., which is the Master Limited Partnership (MLP).

SemGroup L.P. immediately lost control of the G.P. which is now run by Manchester/Elliot and Alerian because the G.P. secured a now defaulted loan from those two parties.

SemGroup Energy Partners L.P. (the publicly traded MLP, trading under ticker SGLP) is not bankrupt and has sufficient cash to survive for several quarters. SGLP is in talks with their lenders to cure their own default in their credit agreement resulting from their former parent's filing. And a likely sale of assets at the former parent (SemGroup L.P.) to any of the likely buyers will result in a resumption of cash flow to SGLP.

Likely buyers include Plains, NuStar, Enterprise, Kinder, and Enbridge. SGLP is trading at below its liquidation value.