Oil firms battle banks for shot at Semgroup's cash

[Robbien]

Source: Reuters

NEW YORK, May 14 (Reuters) - Former oil suppliers to bankrupt energy-trader SemGroup asked Thursday for priority to be paid back ahead of SemGroup lenders, including Bank of America (BAC.N), which hold more than $3 billion in claims.

Oil producers from Oklahoma, Texas and Kansas -- who claim Semgroup owes them more than $400 million for oil they supplied before the company's Chapter 11 filing last July -- argued before a Delaware bankruptcy judge for the right to collect.

The producers told U.S. Bankruptcy Judge Brendan Shannon that state laws protecting oil vendors give them priority ahead of SemGroup's (SGLP.PK) secured lenders, led by Bank of America. Banks hold $3 billion in claims against Semgroup, including $2.5 billion in loans.

Read more: http://www.reuters.com/article/marketsNews/idUSN1450369620090514

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Battle of the Titans: BigOil versus Banksters.

Corporate elite battling amongst themselves for the spoils while Semgroup employees are left wondering where their jobs went.