The idea that BP (BP) might actually file for bankruptcy, particularly as part of a merger that...


The idea that BP (BP) might actually file for bankruptcy, particularly as part of a merger that would enable it to cordon off its liabilities from the spill, is starting to percolate on Wall Street. Given that Shell (RDS.A) and Exxon Mobil (XOM) have billions in cash on hand and market values that easily exceed BP, now would be the time to make a deal.
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Comments (6)
  • D. McHattie
    , contributor
    Comments (1844) | Send Message
     
    Correct me if I'm wrong but part of the goal served by bankruptcy would be to avoid paying for the full consequences of this oil spill?

     

    Strike anyone else as morally reprehensible?
    8 Jun 2010, 02:41 PM Reply Like
  • spald_fr
    , contributor
    Comments (2814) | Send Message
     
    Isn't current regulatory liability now limited to $75MM (of which the govt billed BP $69MM last week)?

     

    Why would one go bankrupt and lose that legacy liability limitation?
    8 Jun 2010, 02:44 PM Reply Like
  • youngman442002
    , contributor
    Comments (5123) | Send Message
     
    The liability cap will be removed...the politicians will make sure of that...but there will be no limits..and the lawyers will destroy BP....its better than welfare..just say you lost millions......when in reality you lost thousands...
    8 Jun 2010, 02:50 PM Reply Like
  • spald_fr
    , contributor
    Comments (2814) | Send Message
     
    ["The liability cap will be removed...the politicians will make sure of that...but there will be no limits..and the lawyers will destroy BP"]

     

    You are suggesting an ex post facto law? They are expressly forbidden by the US Constitution (clause 1, Article 1, section 10) but certainly are allowed under parliamentarian systems such as GB.
    9 Jun 2010, 06:16 PM Reply Like
  • Anjum
    , contributor
    Comments (77) | Send Message
     
    I have my reservations about this theory. The damages estimate is around $20 billion, give or take a few. Thats equal to a year's profit for BP, not counting the cash it has on its books ... the sky wont fall down if BP had to eventually shell out that money.
    8 Jun 2010, 03:02 PM Reply Like
  • Anjum
    , contributor
    Comments (77) | Send Message
     
    BP to pay Q1 interim dividend as proposed ! that should reinforce my view expressed a while back.
    8 Jun 2010, 03:29 PM Reply Like
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