Firm shareholder Steven Bugg quoted in article on SemGroup bankruptcy
McAfee & Taft shareholder Steven Bugg was interviewed for the lead story in Friday’s Tulsa World Business Section that focused on how Tulsa-based SemGroup’s bankruptcy would affect small oil producers.
The article reports that “court records indicate that SemGroup may owe up to $1 billion to producers who sold oil or other goods on credit to SemCrude and other subsidiaries.” Mike Terry, president of the Oklahoma Independent Petroleum Association, was quoted by the article saying, “There are going to be some producers that are going out of business.”
Bugg, who practices primarily in the areas of creditors’ rights, bankruptcy and related litigation, is representing Oklahoma producers. He told the Tulsa World that suppliers who sold to SemGroup on credit have a hard fight ahead.
Bugg said that “he did not see any producers — whether they’re oil suppliers or royalty owners — getting paid by SemGroup in anywhere from six months to two years,” the article reports. Those who delivered oil before the bankruptcy may have a better position than those making deals after the July 22 filing.
“If a producer thinks they still want to sell to SemCrude, the court has said the lien rights will not be enforceable unless he specifically grants that relief, which he has not done,” Bugg pointed out. “They have not been paid and won’t be paid for a long time.”