The new way forward tries to answer producers’ objections filed in the wake of SemGroup’s first reorganization disclosure on May 15. The Tulsa-based midstream energy company hopes to emerge from Chapter 11 bankruptcy by Oct. 1, according to the plan. “The debtors believe that confirmation and implementation of the plan is in the best interests of all creditors,” the plan states.

U.S. Bankruptcy Judge Brendan L. Shannon will hear arguments in Wilmington, Del., beginning July 20 on the adequacy of the reorganization disclosure. If approved, the plan will go to a vote of creditors.

Most of SemGroup’s original reorganization plan remains intact. Overall equity and cash offered to claim holders dropped $20 million to $2.25 billion, according to reports.

Secured creditors, such as administrative agent Bank of America, would hold 95 percent of stock in the newly emerged, publicly traded SemGroup, slightly less than first proposed. Unsecured creditors, such as producers, would get about 5 percent.

The amended plan does not change in its hard line opposing Catsimatidis, the billionaire who made a highly publicized attempt to take control of SemGroup late last year. He has a majority of seats on the company management committee but so far is not part of the reorganization.

Catsimatidis has challenged the right of SemGroup CEO Terry Ronan and other day-to-day executives

“The debtors believe that the Catsimatidis Group does not have any authority to rescind grants of authority to the debtors’ management because Carlyle/Riverstone has not approved such rescission,” the reorganization disclosure reads.

Catsimatidis had no comment despite an e-mailed request Monday from the Tulsa World. He previously has expressed optimism about working out a deal.

Shannon also will hear arguments on the rift between Catsimatidis and Ronan during the July 20-21 proceedings. Catsimatidis contended that he should run SemGroup through controlling five of the nine management committee seats, but part-owner Carlyle/Riverstone has three seats and veto power over decisions, according to reports. Catsimatidis also has reportedly developed his own reorganization plan and shared it with some creditor groups. The plan, however, has not been publicly released.

Oil and gas producers could come out with a higher stake than Catsimatidis if the current plan is approved. Their return for product sold to SemGroup on credit around the time of bankruptcy is increased to 8 cents on the dollar from the previously offered 4 cents, but it remains far short of the $414 million in payback originally sought, according to reports.

Numerous producers, including Tulsa-based Samson Resource Co., objected to the first reorganization plan. They contended that the disclosure lacked adequate financial details and input from producers.

The reorganized SemGroup would offer about $1 billion in new stock. Physical assets would include its crude oil storage and transportation business, SemMexico, SemEuro, the White Cliffs Pipeline from Colorado to Cushing, and the joint venture with Kaiser-Francis Oil Co. on the Wyckoff natural gas storage facility in New York.

Creditors would receive about $911 million in cash, but SemGroup would keep about $50 million for initial working capital, according to the plan. Company managers also projected that SemGroup would grow from $1.9 billion in assets next year to $2.09 billion in 2013.

SemGroup already has support for the reorganization plan from secured creditors. The company originally planned to liquidate its energy assets to pay off debts but later contended that a Chapter 11-guided reorganization would create more value for creditors.

The 9-year-old Tulsa company filed for bankruptcy protection on July 22, 2008, after losing $2.4 billion in margin calls on oil futures trades and having its credit line pulled by Bank of America, according to reports.

Bankruptcy Examiner Louis Freeh’s investigation report, released in April, blamed co-founder former CEO Tom Kivisto for much of the damage. Kivisto commanded a secretive and risky futures trading strategy that bet worldwide oil prices would fall even as they rose to a historic high of $147 per barrel last July, according to the report.

Freeh also alleged that Kivisto and fellow co-founders Gregory Wallace and Kevin Foxx mismanaged SemGroup and paid themselves tens of millions in salary, bonuses and other compensation even as the company floundered.

Kivisto, Wallace and Foxx have denied wrongdoing. The Examiner’s report did not have indictment powers, but the U.S. Securities and Exchange Commission, U.S. Attorney’s Office and other authorities are investigating SemGroup’s downfall.