The settlement, reached during an all-day mediation session Sunday, could pay producers $84 million more than offered in SemGroup’s last reorganization plan filed last month. The debtor filed its fourth amended plan Tuesday to include details from the mediation settlement.

“The Producers’ Committee unanimously supports the plan as the best way to ensure a prompt and fair resolution,” reads the committee’s statement in SemGroup’s disclosure statement.

The producers will drop their Third Circuit U.S. Court of Appeals suit in response to the settlement, according to reports. They were trying to override a previous decision by U.S. Bankruptcy Judge Brendan L. Shannon, who ruled that claims by secured lenders such as banks took precedent over unsecured claims by producers.

The first payback offered to producers last spring would have paid only about 4 cents on the dollar, according to reports. The reorganization plan was first filed in May and has been amended three times since.

SemGroup filed for Chapter 11 bankruptcy protection July 2008 after a cash-flow crisis caused by losing at least $2.4 billion in margin calls on failed oil futures trades. Before that, the company took delivery of at least $400 million worth of oil and gas on credit, producers alleged.

Producers would be paid all of their 20-day claims,

SemGroup is hoping to exit Chapter 11 by offering $2.26 billion in cash and equity to its creditors. Secured lienholders would receive about 95 percent of the company’s value.

A confirmation hearing on the reorganization plan is set Oct. 26. A hearing on the amended disclosure statement is scheduled for Thursday.