Bankrupt SemGroup seeking restructuring experts
Bankrupt SemGroup in Tulsa seeking restructuring experts

Published: August 15, 2008

TULSA -- A Delaware bankruptcy judge is set to decide whether collapsed energy company SemGroup LP can hire temporary restructuring experts paid between $245 and $795 an hour and eligible for $7.5 million in bonuses, according to records.

SemGroup already has paid a $1 million advance to the restructuring specialists from AlixPartners and its subsidiary, APS Services, documents show.

A company spokesman said Thursday that the sums are standard in a field that demands a particular, high-pressure kind of expertise.

The Tulsa-based company laid off 110 of its approximately 400 Tulsa workers earlier this week.

Those workers could receive up to two weeks' severance, but will have to wait until Federal Judge Brendan L. Shannon can sign off on the termination payouts during a Monday motions hearing.

SemGroup indicated it expected to pay about $1.1 million in severance packages to rank-and-file workers, according to the company's first-day bankruptcy filings.

Shannon also will rule on final approval allowing SemGroup to use its remaining cash funds and an additional $100 million in "debtor in possession" financing, among other things.

Founded eight years ago in Tulsa and recently considered one of the nation's biggest private firms, SemGroup filed for Chapter 11 bankruptcy protection in Wilmington, Del., on July 22.

Six days earlier, its $2.4 billion account on the New York Mercantile Exchange had been transferred to the Barclay's financial firm because SemGroup lacked adequate cash flow to pay the margin calls, according to reports.

In addition to its $2.4 billion in trading losses, SemGroup reportedly owes banks and other creditors about $2.5 billion and suppliers such as well operators an additional $1 billion.

Copyright 2008 The Associated Press.

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