SemGroup seeks court approval of settlement with Special Energy

By Alice Popovici

New York, Oct. 8 - SemGroup Energy Partners LP requested approval of a settlement agreement with Special Energy Corp. in exchange for the dismissal of adversary proceedings in regard to missed payments on Special's interest in oil and gas wells, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

A hearing is scheduled for Oct. 26.

The adversary proceedings pertain to "the proper legal treatment of the ScissorTail Payment, which was wired to [SemGroup subsidiary] SemCrude pursuant to an oral agreement whereby SemCrude had previously agreed to make payments to owners of interest in wells produced by Special," the motion states. "Due to the commencement of the bankruptcy cases, SemCrude did not make payments to Special's interest owners related to the ScissorTail Payment."

As part of the proposed settlement, SemGroup will pay Special $3.2 million, in addition to credits of $172,878, $872,959 and $980,534 for production payments, according to the motion. Special will repay $2.91 million to SemGroup.

SemGroup Energy is a Tulsa, Okla.-based operator of a diversified portfolio of complementary midstream energy assets.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.