TULSA, Okla. (AP) - Suppliers who sold oil on credit to SemGroup LP before it filed for Chapter 11 bankruptcy won't be repaid with any of the 150 million dollars the company was allowed to borrow.

A Delaware bankruptcy judge allowed SemGroup to get the interim loan to keep it in business while it tries to sell off its assets to retire debt. The Tulsa-based company had set up a supplier protection program and an application process for the producers but hasn't been able to follow through.

Oklahoma Independent Petroleum Association Vice Chairman Mike McDonald says now the suppliers' only option to get what's owed to them is to wait until the bankruptcy process is completed.

Ignon says SemGroup hasn't abandoned the program, but says company officials can't guarantee which suppliers would get paid.

SemGroup filed for bankruptcy July 22nd after losing 2.4 billion dollars in futures trading. It's also laid off 250 employees, including 110 in Tulsa.

The chief restructuring officer for SemGroup says paying an estimated 400 million dollars in pre-bankruptcy claims could cause a debilitating volume of litigation.