SemGroup's Former CEO Speaks Out

A 10 day silence was broken as the founder of SemGroup speaks out. Tom Kivisto spoke publicly on Saturday for the first time since being replaced as SemGroup's president and CEO.

The News On 6's Dan Bewley reports Kivisto spoke for three minutes, reading from a prepared statement. He did not answer any questions. He addressed SemGroup employees and the city of Tulsa, but admitted there's not much he can say.

With his wife at his side Kivisto appeared in public nine days after being removed as SemGroup's president and CEO. The company he founded is under investigation by the SEC and the U.S. Attorney's office.

"With an investigation underway, I cannot answer any of the pressing questions or comment on speculation regarding the SemGroup situation," said Kivisto.

SemGroup filed for bankruptcy on Tuesday after the company's stock fell more than 50% late last week. On Saturday, Kivisto said SemGroup's employees are still on his mind.

"SemGroup employees are world class and I want their professional and financial futures to be secure and rewarding," said Kivisto.

Since filing for bankruptcy, SemGroup is facing a myriad of allegations. A company subsidiary, SemCrude, has been accused of using a $54 million loan meant for the construction of a pipeline and instead sending the money to SemGroup days before the stock fell. Kivisto, himself, is being sued for $12 million by Bank of America. While admitting he can't give employees the answers they want, he says time will expose the truth.

"I trust, however, as the facts and the truths surrounding this chain of events are revealed, the SemGroup employees will regain their trust in what they initially believed," said Kivisto.

Kivisto also addressed the Tulsa community. During his tenure as the leader of SemGroup, the company established itself as a leader among non-profit organizations. From the Tulsa Ballet to Gilcrease Museum to working to stop domestic violence Kivisto says he still remains committed to Tulsa, adding whatever happens to SemGroup, Tulsa's resiliency will help the community bounce back.          

"Tulsa has never been, and will never be, built on a single corporation and Tulsa has always rebounded well when bad things happen to one of its corporate citizens," said Kivisto.

With that, no questions answered, Kivisto and his wife walked away.

Late last week, a spokesman for SemGroup said the company would not have a public comment for at least several weeks. So it could be a while before we hear from anyone connected with the company.

A statement from Tom Kivisto:

Over the past 10 days, I have waited to make any public statements, as my administrative leave from SemGroup makes it inappropriate for me to answer any questions related to SemGroup issues. With an investigation underway, I cannot answer any of the pressing questions or comment on speculations regarding the SemGroup situation. I would, however, like to speak to the SemGroup family as well as the Tulsa community.

First and foremost: my biggest concern has been--and will be--for the hard-working SemGroup family of employees who were the reason for SemGroup's unprecedented growth and success. SemGroup employees are world-class and I want their professional and financial futures to be secure and rewarding. Whenever crisis hits an organization, employees lose trust and faith in what they thought they knew and understood about their leaders. In turn, the leadership owes those who have given their careers to that organization an explanation for the circumstances. With investigations, and the complexities of the issues, these explanations are slow in coming. I trust, however, as the facts and truths surrounding this chain of events are revealed, the SemGroup employees will regain their trust in what they initially believed.

Secondly, my family remains committed to the Tulsa community. I am a strong proponent of both personal and corporate giving to the local community. Despite SemGroup's news, this has not changed for me personally.

However, Tulsa has never been, and never will be, built on a single corporation and Tulsa has always rebounded well when bad things happen to one of its corporate citizens. I expect great things for Tulsa in the immediate future, as well as the years to come.

Related stories:

07/25/2008  Bank Sues SemGroup's Kivisto

07/22/2008  SemGroup Files For Bankruptcy

07/21/2008  Creditors Take Charge Of SemGroup

07/18/2008  Tough Times For Tulsa's SemGroup

07/18/2008  Cash Shortage Hurting SemGroup

07/18/2008  SemGroup's Sponsorships May Slow