Introduction

On May 12, 2012, the United States District Court for the District of Delaware (the “District Court”) issued an opinion (the “Decision”) in the SemCrude bankruptcy in response to the SemCrude reorganized debtors’ (“Debtors”) motion to dismiss an appeal. Several of Debtors’ oil producers (the “Producers”)

On October 14, 2008,  the United States Bankruptcy Court for the District of Delaware appointed Louis Freeh, the former Director of the FBI, as examiner in the SemCrude bankruptcy.  Five weeks after his appointment,  Freeh submitted the Examiner’s Preliminary Work Plan as required under the order granting his appointment (the "Examiner Order").  Pursuant to the Examiner Order,  Freeh was directed to investigate circumstances surrounding SemCrude’s trading strategy, the potential misuse of borrowed funds and whether any of SemCrude’s employees or directors participated in fraud or mismanagement.  The Examiner Order requires Freeh to complete his investigation within six months after the Bankruptcy Court approves the Examiner’s Work Plan.

As indicated in the Examiner’s Preliminary Work Plan, soon after his appointment Freeh traveled to Tulsa, Oklahoma and met with SemCrude’s attorneys, spoke with various employees and toured its offices.  During subsequent meetings,  Freeh, or his associates, met with the SEC, Department of Justice and the Commodity Futures Trading Commission.  These meetings culminated in SemCrude and Freeh reaching an agreement regarding the sharing of information and documents.


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