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Started By
Message
re: Reason for token cleanup effort by BP
Posted on 6/7/10 at 9:37 am to Droplinebacker
Posted on 6/7/10 at 9:37 am to Droplinebacker
quote:
One more thing - they have been RUMORS (nothing more) that BP's legal is already gearing up for bankruptcy like its a foregoing conclusion.
Do you understand why a company would declare bankruptcy?
It's a legal move that allows a company to protect its assets from the debtors.
So IF (and this will never make it through court bc there's no way you could prove the actual impact to an industry), but IF say, La, Miss, & Floriday filed against BP, bankruptcy is a magic cloak to protect BP.
Let's say it's a class action lawsuit - like what happened with Exxon - and the three states said the costs and lost to our lifestyle was 200 Billion. And for a magic minute, we might say that BP was worth 200 Billion and the judge ordered BP to pay the 200 Billion.
If they file bankruptcy, they don't have to give the people who sued them much - maybe pennies on the dollar.
You also have to consider there are other companies that would have an interest in the success or failure of BP, so they could get lines of credit from say Shell Oil for operating costs, but that money would not be considered an asset.
Literally, BP could go bankrupt and still operate and make a profit while not paying a dime to La.
If there is any money given to states it will be years and years. And since we have real Americans like David Vitter trying to limit the payback of the oil companies to $75 million, I doubt that anyone will get paid, except lawyers and politicians.
Free enterprise!
2
Posted on 6/7/10 at 9:42 am to ThatsAllSheWrote
quote:
Just read this morning that the cost of the spill has already reached 1.25B. Don't know if that is realiable or not so take it for what it's worth.
I'll have to poke around, but a report I saw said BP made 250 billion last year.
I don't think people understand that a billion here or a billion there is considered chump change to them.
For scale, let's make it easy and say that BP made 200 billion and they had to pay 1 billion for cleanup.
That's essentially like saying you have a 20 dollars and you had to spend a nickle.
How much do you care about a nickle?
Posted on 6/7/10 at 10:03 am to tigerpurple84
Hard to clean something up, when the mess is still happening.
Posted on 6/7/10 at 3:35 pm to tigerpurple84
quote:
For scale, let's make it easy and know that BP declared dividends of 16 billion and they had to pay 1 billion for cleanup.
FIFY
Now reallizing that dividends are declared quarterly, that projects out to $64B in declared dividends per year.
BP can withstand 64 times it's current liability by simply declaring no dividends for the next year. That may affect stock price but it does not affect their short term profittability.
Thunderhorse cost BP over $5B to develop. That is only one of their projects. They have DEEEEPPPPP pockets.
Thunderhorse
BP Bankrupt =
Posted on 6/7/10 at 4:03 pm to Cosmo
quote:
BP's assets are in the hundreds of billions. This will not break them.
Plus they will be able to amortize the loss over many man years.....This will be a blip on their accounting books.
Posted on 6/7/10 at 4:08 pm to tigerpurple84
quote:
It's a legal move that allows a company to protect its assets from the debtors.
Depends on the type of bankruptcy the file for, AND they have to qualify for that type.
quote:
La, Miss, & Floriday filed against BP, bankruptcy is a magic cloak to protect BP.
Not necessarily true.
quote:
If they file bankruptcy, they don't have to give the people who sued them much - maybe pennies on the dollar.
Again not true, and depnds on the type of bankruptcy filed for; in addition as a conglomerate, they can file in the US but may still be liable for holdings offshore...depends how they are structured. Do you know, I don't.
quote:
Literally, BP could go bankrupt and still operate and make a profit while not paying a dime to La.
false and misleading.
quote:
And since we have real Americans like David Vitter trying to limit the payback of the oil companies to $75 million, I doubt that anyone will get paid, except lawyers and politicians.
Try reading...That cap was set by Congress after Exxon Valdez. They set it and raised the tax and costs on those operating in the oil fields. Spin all you want, but that comment is disingenuous.
quote:
Free enterprise!
Because socialism is such a better option? Have fun in Cuba.
Posted on 6/7/10 at 4:57 pm to Taxing Authority
Have you forgotten about Texaco vs. Pennzoil. Texaco, an extremely profitable and asset rich company, filed for bankruptcy protection after getting ordered to pay Pennzoil $10 billion due to the Getty acquisition. Texaco was by no means broke but they were able to file for bankruptcy.
Posted on 6/7/10 at 5:10 pm to ThatsAllSheWrote
My brother is in Venice and he said its a whole lot of nothing going on, regarding the clean up crews. Said they are hiring anyone that walks thru the door and it shows. Very little real effort in cleaning oil up from workers there.
Posted on 6/7/10 at 5:32 pm to tigerpurple84
quote:Ummm. You ever hear of a bankruptcy court? The court must appoint an overseer and approve who gets paid for what. The bankrupt corp doesn't get to make those choices.
If they file bankruptcy, they don't have to give the people who sued them much - maybe pennies on the dollar.
You also have to consider there are other companies that would have an interest in the success or failure of BP, so they could get lines of credit from say Shell Oil for operating costs, but that money would not be considered an asset.
Literally, BP could go bankrupt and still operate and make a profit while not paying a dime to La.
Posted on 6/7/10 at 5:32 pm to Ray Ray Rodman
I've said the same thing from what I observed in Fourchon and various parts of Grand Isle.
It'll be a news story if one of the news agencies would pick up on it.
It'll be a news story if one of the news agencies would pick up on it.
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