This SemGroup meltdown kinda blows...

[Okla-homey]

Big local employer smack dab in Ch.11. They formerly gave away lots of money. Even sponsored a big LesProGolfAssoc. tournament up here last year. The CEO is unavailable for comment.

http://www.tulsaworld.com/news/article.aspx?articleID=20080726_49_A1_hThesu406028

[Dio]

So, when do they rename the BOk Center the "Penn Square Bank Center"?

And, good job losing money in oil when gas is $4.00/ gal. It takes a special kind of genius to pull that off.

[OU-HSV]

This has effected a lot. I saw a local oil distributor (a father and son ran business) on the news the other night...he was saying how SemGroup owes them a lot of money. And SemGroup sent out letters saying something like "if you will agree to supply oil for the next few months we will agree to pay you what we owe you".
Anyways, one of my projects at my job was also effected by this...no big deal, we have plenty of work, but there's a trickle down problem from their meltdown that will effect tons of businesses I think.

[royalfan5]

Maybe I am thinking of the wrong company, but these guys where the ones who got taken out by having too big of a short bet on energy, right?

[goodonya]

3-of these guys were my frat brothers back in the day (not Kivisto). You could of seen it coming even then.

[JohnnyMack]

So, when do they rename the BOk Center the "Penn Square Bank Center"?

And, good job losing money in oil when gas is $4.00/ gal. It takes a special kind of genius to pull that off.

Two totally different companies there, slick.

[Dio]

Two totally different companies there, slick.

And the president of one was on the board of the other getting loans he can't repay, slick.

http://biz.yahoo.com/e/080724/bokf8-k.html

[tommieharris91]

I think SemGroup was one of the major energy speculators. It's one reason the price of oil won't keep flying upward.

[JohnnyMack]

And the president of one was on the board of the other getting loans he can't repay, slick.

http://biz.yahoo.com/e/080724/bokf8-k.html

You really think an 87 million dollar charge will affect a bank that big?

[Okla-homey]

Maybe I am thinking of the wrong company, but these guys where the ones who got taken out by having too big of a short bet on energy, right?

yes. Moreover, they deal in asphalt and the cost of oil has driven the price per yard up so high they say its not profitable anymore. Seems bogus to me. Asphalt is an essential commodity people must buy. Seems to me you just pass the price along to the consumer.

[Okla-homey]

And the president of one was on the board of the other getting loans he can't repay, slick.

http://biz.yahoo.com/e/080724/bokf8-k.html

Beware of interlocking boards of directors. srsly.

Back when being a liberal meant walking the walk and talking the talk (pre 1970) prominent liberals warned us about this. I think they were right.

[Frozen Sooner]

You really think an 87 million dollar charge will affect a bank that big?

Dude, I don't care if you're CreditSuisse or Bank of America. An 87 million chargeoff hurts.

[tommieharris91]

yes. Moreover, they deal in asphalt and the cost of oil has driven the price per yard up so high they say its not profitable anymore. Seems bogus to me. Asphalt is an essential commodity people must buy. Seems to me you just pass the price along to the consumer.

Not when concrete is a longer-lasting alternative that doesn't have nearly the exposure to oil prices that asphalt has.

[Okla-homey]

This has effected a lot. I saw a local oil distributor (a father and son ran business) on the news the other night...he was saying how SemGroup owes them a lot of money. And SemGroup sent out letters saying something like "if you will agree to supply oil for the next few months we will agree to pay you what we owe you".



That sort of thing is common in a Chapter 11 re-organization. The whole goal of Ch. 11 is to allow the company to remain in business in order to try and right the ship. If the bankruptcy court judge approves the plan as this one did, people who agree to continue to do business with the company don't have to worry so much about getting stiffed or receiving only pennies on the dollar of debt the company owes them in a bankruptcy distribution if the company doesn't make it.

[Frozen Sooner]

Beware of interlocking boards of directors. srsly.

Back when being a liberal meant walking the walk and talking the talk (pre 1970) prominent liberals warned us about this. I think they were right.

Back when being a Republican meant not being a corporatist swine, they were pretty against it as well (pre-Harding).

[Okla-homey]

Not when concrete is a longer-lasting alternative that doesn't have nearly the exposure to oil prices that asphalt has.

eggselent point. I hadn't thought of that. Is a yard of concrete and a yard of asphalt pretty much interchangeable for most paving applications?

[StoopTroup]

I'm gonna buy me an Asphalt Necklace and sell it on EBAY.

[King Crimson]

Beware of interlocking boards of directors. srsly.

Back when being a liberal meant walking the walk and talking the talk (pre 1970) prominent liberals warned us about this. I think they were right.

i'll buy this statement. though i'm not sure what the sea-change date of 70 means. the stooges funhouse? really, on the subject of interlocking boards....see C. Wright Mills' (a classic american "liberal" in the true sense) "The Power Elite".

[StoopTroup]

I got to read Thursday and Fridays Tulsa World last night.

It seemed to me that the guy running things now is just trying to save what's left of the Corporation. At least that's what I got from it.

I'm betting the LPGA or any event where they become a sponsor isn't on the horizon for some time.

I do hope Tulsa can find another sponsor to help keep the LPGA coming to town. I've had a great time checking out the ladies. :D

[Dio]

You really think an 87 million dollar charge will affect a bank that big?

You really think Kaiser having to replace the $188 Million LOC they had with 6 banks with his own money is a good thing?

And if there were sweetheart deals being made with this board member's company, what's going on with the other board members' companies?

And, the DOK is strangely silent on this. Are they worried Burns will quit buying those nice big ads for The State's University? ;)

[Okla-homey]

i'll buy this statement. though i'm not sure what the sea-change date of 70 means. the stooges funhouse? really, on the subject of interlocking boards....see C. Wright Mills' (a classic american "liberal" in the true sense) "The Power Elite".

My intended point was merely I trust liberals who don't live in mansions and don't have a lot of stuff. Think Thoreau. Or Woody Guthrie. Or Jesus.

Back in my day, a guy who advanced liberal views usually lived simply and didn't have much stuff because it would be patently hypocritcal to do so.

Moreover, he or she wouldn't bother trying to amass a lot of stuff because he sincerely beleived stuff doesn't matter. I could respect that. Still do. I don't respect "limo liberals."

I need to check out this C. Wright Mills. When did he write?

[JohnnyMack]

Dude, I don't care if you're CreditSuisse or Bank of America. An 87 million chargeoff hurts.

Oh it does. But BOk Financial is worth around 17 billion. So any insinuation that this will somehow rock it to its core is just silly. That's all I was saying.

[Mjcpr]

I think they teach you to use the word "moreover" at law skool.

[Okla-homey]

I think they teach you to use the word "moreover" at law skool.

not really, but they do encourage use of the word "notwithstanding" because lay people are typically thrown by it.;)

[JohnnyMack]

My intended point was merely I trust liberals who don't live in mansions and don't have a lot of stuff. Think Thoreau. Or Woody Guthrie. Or Jesus.

Back in my day, a guy who advanced liberal views usually lived simply and didn't have much stuff because it would be patently hypocritcal to do so.

Moreover, he or she wouldn't bother trying to amass a lot of stuff because he sincerely beleived stuff doesn't matter. I could respect that. Still do. I don't respect "limo liberals."

I need to check out this C. Wright Mills. When did he write?

I on the other hand respect the hell out of all those rich, conservative preachers who amass that wealth.

And all the conservative trust fund babies, gotta respect them too.

[Okla-homey]

UPDATE: CEO returned from undisclosed location and said some stuff.

http://www.tulsaworld.com/news/article.aspx?subjectID=11&articleID=20080726_1__TomKi23181

[Soonerus]

I hate the SemGroup deal too, it is bad for Oklahoma...

[Okla-homey]

:pop:


I on the other hand respect the hell out of all those rich, conservative preachers who amass that wealth.

I agree. Showy excess is generally a sign of some latent character flaw, in virtually anyone.

And all the conservative trust fund babies, gotta respect them too.

People who received their initial stake in life by accident of birth but grew what they were given are worthy of respect

[Stitch Face]

Concrete is still more expensive than asphalt, though, right?

[StoopTroup]

I on the other hand respect the hell out of all those rich, conservative preachers who amass that wealth.

And all the conservative trust fund babies, gotta respect them too.

Huh? What?

http://ww3.tulsachamber.com/upload/MMM%20Mayor%20LaFortune.jpg

[King Crimson]

I need to check out this C. Wright Mills. When did he write?

Mills wrote in the late 50's and early 60's. he was from Texas and eventually taught at Columbia...where he came to work dressed in army fatigues and generally pissed everybody else off. rode BMW motorcycles.

He was one (if the only) American sociologist of his time to critique both the "realities" of American democracy and the post-war economy--.

writing in the post-war era.....he, along with David Reisman and William Whyte were among the first (in the US) to identify the rise of the corporation and so called "white collar" bureaucracy* as a dominant social and economic form of organization. and, in many ways, anticipated the social conflicts of the later 60's.

*borrowing from Max Weber's concept of bureaucratic authority.

[tommieharris91]

Concrete is still more expensive than asphalt, though, right?

I'm not sure, but I do know that it takes a lot more oil to make asphalt than concrete. And concrete doesn't wear down as fast, especially in places where the winters are rough.