Chevron Fights For Setoff Of SemGroup Debt

Law360, New York (May 28, 2010, 12:25 PM EDT) -- Beaten but unbowed in its effort to limit losses from SemGroup LP’s reorganization, Chevron USA Inc. has challenged the bankruptcy and district courts' refusal to let Chevron offset a $1.5 million debt with roughly $13.5 million that SemGroup subsidiaries owe Chevron.

Chevron turned to the U.S. Court of Appeals for the Third Circuit on Thursday, claiming the bankruptcy judge overseeing SemGroup’s completed restructuring erred in refusing the oil company's bid to offset the debts, a decision the district court subsequently upheld in April.

Finding that the...
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