Newspaper article THE JOURNAL RECORD

Pioneer Natural Resources Seeks $30M out of SemGroup Bankruptcy

Newspaper article THE JOURNAL RECORD

Pioneer Natural Resources Seeks $30M out of SemGroup Bankruptcy

Article excerpt

Pioneer Natural Resources Co. is seeking payment of a $30 million SemGroup LP pre-bankruptcy claim as a critical supplier under a supplier protection program approved by the Delaware Bankruptcy Court last week.

SemGroup LP and 24 subsidiaries filed for Chapter 11 bankruptcy reorganization last week.

Pioneer supplies condensate to certain SemGroup subsidiaries.

In a written statement, Pioneer said Monday that it continues to supply condensate to SemGroup, but is "monitoring SemGroup's situation closely and will sell its condensate to alternate purchasers should it become necessary to do so."

In its initial bankruptcy filings, SemGroup listed $2.4 billion in oil-futures market losses, including $290 million owed by a trading group owned by co-founder and former President and CEO Tom Kivisto.

On Monday, the bankruptcy court held a hearing regarding an adversary complaint filed by General Electric Capital Corp. and PE- Pipeline Services LLC.

They contend that earlier this month SemCrude Pipeline LLC borrowed about $54 million on a GECC loan and sent the money upstream to the SemCrude parent company rather than using the cash for the continued operation of a pipeline project the money was intended to fund.

GE Capital and PE-Pipeline have asked for a temporary restraining order and preliminary injunction in the case.

On Saturday, Kivisto surfaced at a news conference, where he declined to take questions from reporters.

Kivisto's remarks seemed intended to try to reassure SemGroup employees about the company's situation.

Kivisto said he believes that "as the facts and truths surrounding this chain of events are revealed, the SemGroup employees will regain their trust in what they initially believed" about the company.

Also on Monday, Fitch Ratings affirmed BOK Financial Corp.'s long- and short-term Issuer Default Ratings, with a Long-term IDR of "A-" and a Short-term IDR of "F1. …

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