SemGroup, L.P. announced Wednesday that it has received Bankruptcy Court approval of its essential initial motions requesting relief, including authorization to use cash collateral. The use of cash collateral will enable SemGroup to utilize existing cash and cash generated through normal business operations to meet its obligations post-Chapter 11 filing, including trade payables and wages and benefits. SemGroup's bank lenders have also approved the use of cash collateral.

Meanwhile, SemGroup is continuing its negotiations with lenders to secure sufficient debtor-in-possession (DIP) financing. The Company anticipates obtaining a DIP facility within a week of the Chapter 11 filing, which occurred on July 22, 2008.

The Court also approved SemGroup's initial request for $50 million to support its Supplier Protection Program. Under the Program, certain suppliers who contractually commit to continue doing business with SemGroup, on the same terms as before the Chapter 11 filing, will be eligible to receive full payment, as due, for goods and services that were delivered before the filing, but for which the supplier has not yet been paid.

In addition, the Company received the following approvals to ensure business as usual during its restructuring. The ability for SemGroup to:

• Manage its Supply Chain by continuing to pay trade vendors in the ordinary course of business;
• Reimburse employees for business-related expenses; and
• Pay certain shipping and related obligations without interruption.

"The approval of these motions will provide critical relief to our employees, customers and suppliers," said Terry Ronan, acting President and CEO of SemGroup. "They help ensure that we will be able to operate our business as usual as we undertake our reorganization to maximize value for our creditors."

SemGroup, L.P., is a midstream service company providing the energy industry the means to move products from the wellhead to the wholesale marketplace. SemGroup provides diversified services for end users and consumers of crude oil, natural gas, natural gas liquids, refined products and asphalt. Services include purchasing, selling, processing, transporting, terminaling and storing energy. SemGroup serves customers in the United States, Canada, Mexico, Wales, Switzerland and Vietnam.