Judge approves SemGroup bankruptcy reorganization

A Delaware federal bankruptcy judge has approved SemGroup's reorganization plan, which is expected to allow Kansas oil and gas producers to begin being paid on their claims by the end of this year or early 2010.

U.S. Bankruptcy Judge Brendan Shannon's ruling Monday will also make the Tulsa-based oil trader a public company as early as next month when it emerges from Chapter 11 bankruptcy.

Under terms of the plan, Kansas oil and gas producers will receive an average of an estimated 40 to 45 percent of the $130 million owed them by SemGroup, according to attorneys involved with the case.

SemGroup filed for bankruptcy July 22, 2008.

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