WICHITA, Kan. — The long bankruptcy of Central Kansas Crude is nearing its end, promising a partial payback to dozens of small oil producers in Kansas and Oklahoma.
Central Kansas Crude, based in Pratt, Kan., was a middleman, picking up oil from small producers in Kansas and Oklahoma and delivering it to national oil distributor and marketer SemCrude.
When SemCrude declared bankruptcy on July 21, 2008, after collecting a month's worth of oil from producers large and small across the region, Central Kansas was left facing claims worth millions of dollars.
After struggling for months to remain in operation, Central Kansas declared bankruptcy Nov. 17, 2009.
On Tuesday, the bankruptcy court in Wichita is scheduled to rule on a final settlement that completes the liquidation of Central Kansas Crude and divides $7.3 million among the producers.
"The bankruptcy is essentially over," said Jack Marvin of Stinson Morrison Hecker, who is representing Chieftain Oil Co. of Kiowa, Kan.
The attorney representing Central Kansas Crude did not return calls seeking comment.
The money comes from the settlement Central Kansas received from the SemCrude bankruptcy.
"I think it was a favorable outcome for the independent oil producers," said Rick Griffin, an attorney with Martin Pringle who represents several claimants. He said checks should be cut next month.
Read the full stoyr at Kansas.com