Tulsa World: Possible buyer found for SemMaterials' research, technologies

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Possible buyer found for SemMaterials’ research, technologies

By ROD WALTON World Business Writer
Published: 4/21/2009 11:10 AM
Last Modified: 4/21/2009 11:36 AM

Complete coverage: Read all the stories and documents related to the SemGroup collapse.

A company affiliated with SemGroup LP minority owner Thane Ritchie has stepped up with a $6.5 million offer to buy SemMaterials’ intellectual property rights and other property at its Tulsa offices.

The move may be seen as preserving Tulsa jobs and the branding of SemMaterials’ products such as its NovaChip asphalt system, but it still requires an open auction and court approval by the Delaware federal bankruptcy judge. The auction is scheduled for May 4 followed by a May 11 hearing if Judge Brendan L. Shannon OKs the deal.

The motion identifies the SemMaterials’ “stalking horse” buyer as Rhone Midstream Holdings LC and Rhone Cleantech Fun I LP. The companies are connected to Ritchie Capital Management, although the extent of Ritchie’s ownership interest is not known.

Thane Ritchie and his Illinois-based hedge fund own a 25-percent stake in SemGroup LP, according to reports. Ritchie also owned a seat on SemGroup’s management committee, but transferred that to New York billionaire John Catsimatidis late last year in support of the latter’s effort to buy the Tulsa company and reorganize it through the bankruptcy process.

The sale price would fall to $5.5 million if the deal is not closed by May 15, according to the court motion. Rhone also will pay SemGroup $818,000 in exchange

for the lease of SemMaterials offices, research and educational facilities at 6502 S. Yale Avenue.

SemGroup LP has been trying to sell its SemMaterials asphalt unit since shortly after the July 22 bankruptcy petition. No buyers were found for the entire group, which was reportedly losing $15 million per month, according to reports.

Earlier this year, publicly traded subsidiary SemGroup Energy Partners agreed to settle its dispute with SemGroup by trading some of its assets for SemMaterials’ oil tank bottoms and line fill. SemGroup is also selling some of its SemMaterials residual fuel storage to a Louisiana firm, pending final court approval.

Catsimatidis was the sole bidder to make a play for the entire SemMaterials’ unit. However, his bid fell short due to financing problems, according to reports. By ROD WALTON World Business Writer

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