SemGroup Gets Emergency Loan

A federal bankruptcy judge in Delaware granted the Tulsa-based energy company a multi-million dollar emergency loan.

Tuesday, August 5th 2008, 7:59 am

By: News On 6

SemGroup is getting part of the money it said was needed to stay in business. A company spokesman says a federal bankruptcy judge granted SemGroup a $150 million emergency loan. The News On 6's Dan Bewley reports the energy company had asked for a $250 million loan.

SemGroup filed for bankruptcy two weeks ago and fired founder Tom Kivisto. Analysts say the loan gives SemGroup the financial backbone to continue business.

"So, for example, if you were an independent producer of oil in Oklahoma and you were looking into the credit quality of SemGroup you would feel much safer if you knew they had this DIP loan in place because you could get paid out of that if need be," said Corporate Bankruptcy Analyst Kevin Starke.

A company spokesman says a hearing to determine if it will get the rest of the loan is scheduled for later this month.

Stay with Newson6.com for the latest developments. For more information on the SemGroup bankruptcy, CLICK HERE.