SemGroup Subsidiary Tries To Block Financing Deal

Law360, New York (August 4, 2008, 12:00 AM EDT) -- SemGroup Energy Partners LP, a publicly traded affiliate of beleaguered oil distributor SemGroup LP, has moved to block its parent company's bankruptcy financing, arguing that the proposed package offers the subsidiary little protection.

In documents filed Friday in the U.S. Bankruptcy Court for the District of Delaware, SemGroup Energy Partners objected to SemGroup LP's motions for authorization to utilize pre-petition cash collateral and $250 million in debtor-in-possession financing.

In its objection, SemGroup Energy Partners argued that its parent company failed to provide adequate protection to any...
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