Semgroup, producers agree to bankruptcy plan

WILMINGTON, Delaware (Reuters) - Bankrupt oil and gas services company Semgroup SEMGP.UL agreed on a plan of reorganization with creditors and producers that will bring the company out of bankruptcy in November, according to court documents.

The agreement was struck after 24 hours in mediation that had been ordered by the bankruptcy court as a way to end a particularly contentious bankruptcy that started in July 2008.

The company said in a court filing on Tuesday the agreement depends on the court ordering the release of $122 million that was owed to Semgroup and put in escrow by BP (BP.L), ConocoPhillips Co (COP.N) and the J Aron & Co, which is a unit of Goldman Sachs (GS.N).

Semgroup had the support of its banks and unsecured creditors for its plan of reorganization, but the oil producers that supply it were opposed. They argued their claims should not have been subordinated to banks and disputed by management and the producers recently requested the court put an independent trustee in charge of the company.

The mediation brought together management, lenders and producers, who "were able to reach a compromise that will enable the debtors to successfully emerge from chapter 11 following the October 26 confirmation hearing," the company's attorneys said in the filing.

The case is In re SemCrude LP, U.S. Bankruptcy Court, District of Delaware, No 08-11525.