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BP Settlement Theory
Posted on 4/10/14 at 5:17 pm
Posted on 4/10/14 at 5:17 pm
I heard an interesting theory of BP's strategy regarding their BEL settlement and their pending fines.
This guy believes BP will do everything they can to string out the BEL claims until the spill trial is over and fines under the clean water act are levied.
They will then take their US subsidiary bankrupt OR they will threaten bankruptcy and use the business seeking BEL claims as advocates in asking for Congressional intervention on the clean water fines saying if the fines are not reduced the businesses will not be paid and they will go bankrupt.
It would be a political opportunity for VItter and Landrieu if the second scenario happened. They could look the politicians that saved the BP money for the thousands of businesses with claims.
Does this sound possible?
I remember the Texaco bankruptcy to avoid a judgement. I wonder if BP plans to use the same strategy/
This guy believes BP will do everything they can to string out the BEL claims until the spill trial is over and fines under the clean water act are levied.
They will then take their US subsidiary bankrupt OR they will threaten bankruptcy and use the business seeking BEL claims as advocates in asking for Congressional intervention on the clean water fines saying if the fines are not reduced the businesses will not be paid and they will go bankrupt.
It would be a political opportunity for VItter and Landrieu if the second scenario happened. They could look the politicians that saved the BP money for the thousands of businesses with claims.
Does this sound possible?
I remember the Texaco bankruptcy to avoid a judgement. I wonder if BP plans to use the same strategy/
3
Posted on 4/10/14 at 5:19 pm to I B Freeman
I didn't think that the eventual payout would be near enough to cause BP to go through that much trouble. Seems that they would take a severe PR hit and might have trouble drilling or doing anything in our waters if they took that route.
Posted on 4/10/14 at 5:25 pm to notiger1997
quote:
didn't think that the eventual payout would be near enough to cause BP to go through that much trouble
You understand the fines could run tens of billions of dollars??? you don't think that is enough money to cause someone to just walk off from the fines and that CH 11 will not make them go out of business?
You realize Texaco simply reorganized under CH11 and stayed in business?
This post was edited on 4/10/14 at 5:34 pm
Posted on 4/10/14 at 5:29 pm to I B Freeman
You may be right. I haven't followed this in a while, but I thought I read they had set aside something like $30 or so billion to cover some of the expected payout. I guess that could have been just to cover the individual claims and class action and not the gov. fines, etc.
Posted on 4/10/14 at 8:57 pm to I B Freeman
If the current administration is still in office when fines are levied I can see this happening. Didnt the head communist especially appoint someone for the case? I could see them try and make example/ get publicity by hammering BP.
Posted on 4/10/14 at 9:49 pm to GREENHEAD22
It will be interesting to see.
Posted on 4/10/14 at 9:58 pm to I B Freeman
quote:
Does this sound possible
No. BP has already set aside ~$50b via divestments. It would take another $50b to cause concern and that is highly unlikely. Also, BP going bankrupt would seriously harm the US economy and the energy industry. BP is the largest producer in GoM, invests more R&D in the US than any energy company, and employs over 20k people in the US
Posted on 4/10/14 at 9:58 pm to I B Freeman
If its anything like the criminal cases against the engineers then it diff will be. They bent those poor bastards over. Between this and the other two threads my hatred of the gov is at full tilt tonight.
Posted on 4/10/14 at 10:16 pm to LSUOilman
quote:
No. BP has already set aside ~$50b via divestments. It would take another $50b to cause concern and that is highly unlikely. Also, BP going bankrupt would seriously harm the US economy and the energy industry. BP is the largest producer in GoM, invests more R&D in the US than any energy company, and employs over 20k people in the US
They could take their US subsidiary bankrupt just like Texaco did and never stop producing a drop of oil and would have no impact on the US economy.
Shareholders would love it. They could release all the reserves they have set up to the parent company and keep the money stiffing creditors including the plaintiffs and the US government.
I do not put it past them to threaten it and to put Mary forward to try to cap their fines with Congressional action.
This post was edited on 4/10/14 at 10:19 pm
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