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What happens if BP North American files for bankruptcy??
Posted on 6/4/10 at 2:05 pm
Posted on 6/4/10 at 2:05 pm
Do we (tax payers) get caught footing the bill for this clean up? What about all the service companies that are getting these contracts to provide housing , labor and equipment??
4
Posted on 6/4/10 at 2:07 pm to tgrbaitn08
BP said they'll take care of it.
Posted on 6/4/10 at 2:10 pm to Chad504boy
See Blackwater.
Posted on 6/4/10 at 2:11 pm to Chad504boy
The chances of BP going under is highly unlikely at this point. May end up have to merge with someone but dont think they will go under imho.
Posted on 6/4/10 at 2:15 pm to GREENHEAD22
quote:
The chances of BP going under is highly unlikely at this point. May end up have to merge with someone but dont think they will go under imho.
I'm not talking about them going under, i am talking about them filing for bankruptcy protection. They could shift all their money to over seas companies and file for chapter 11 in the US. I'm not a finance or banking guy so i dont really know how it works.
Maybe I should have posted this on the Money Board
Posted on 6/4/10 at 2:21 pm to tgrbaitn08
It ain't happening and even if it does, I think there will be ways for the powers that be to sieze assets and such.
Posted on 6/4/10 at 2:26 pm to notiger1997
quote:
It ain't happening and even if it does,
That doesn't make sense.
BP is self insured and their stock is down about 35%. They have lost $4 billion in equity. It is very likely at some point they will seek bankruptcy protection. Not that they will walk away but they will use it to mitigate the damages.
Posted on 6/4/10 at 2:29 pm to tgrbaitn08
I think a lot of it will depend on their organizational structure and how (and by whom) their assets are hedged.
I don't know if bankruptcy would be the best option for them, but it will be interesting to see their strategy.
Most likely, BP will be dissolved and reorganized with new funding and essentially a clean slate.
I'm not even sure why people keep repeating "But BP said they'd pay for it!" Is this idiot station?
BP is a multinational corporation. A corporation's only purpose for existing is to produce profit for its shareholders. When a corporation ceases to meet that ONE criteria, the corporation ceases to be.
Do not get confused about this. BP is not in the business of drilling for oil. It is in the business of making money.
How it does this is just ways and means. Irrelevant.
So yeah, they can say BP is going to pick up all the costs. But if there's no BP any more, who's paying the bills?
Listening to a buddy the other day, it's not even the US Govt that BP has the highest stakes to. It's the bonding/insurance company. They will get to the truth faster than anyone bc much more money will be lost. Where's the link that says that they are self-insured. I don't think that's true. Didn't BP make like 250 Billion last year? A good insurance policy would be at least triple that for the scope of work BP does, close to a trillion.
Does BP have a trillion dollar line of credit? Who is financing that?
For a good example of businesses breaking and doing major re-orgs, the situation with Inktomi and Yahoo is an interesting one. Not as dramatic as BP, but same theme.
I don't know if bankruptcy would be the best option for them, but it will be interesting to see their strategy.
Most likely, BP will be dissolved and reorganized with new funding and essentially a clean slate.
I'm not even sure why people keep repeating "But BP said they'd pay for it!" Is this idiot station?
BP is a multinational corporation. A corporation's only purpose for existing is to produce profit for its shareholders. When a corporation ceases to meet that ONE criteria, the corporation ceases to be.
Do not get confused about this. BP is not in the business of drilling for oil. It is in the business of making money.
How it does this is just ways and means. Irrelevant.
So yeah, they can say BP is going to pick up all the costs. But if there's no BP any more, who's paying the bills?
Listening to a buddy the other day, it's not even the US Govt that BP has the highest stakes to. It's the bonding/insurance company. They will get to the truth faster than anyone bc much more money will be lost. Where's the link that says that they are self-insured. I don't think that's true. Didn't BP make like 250 Billion last year? A good insurance policy would be at least triple that for the scope of work BP does, close to a trillion.
Does BP have a trillion dollar line of credit? Who is financing that?
For a good example of businesses breaking and doing major re-orgs, the situation with Inktomi and Yahoo is an interesting one. Not as dramatic as BP, but same theme.
This post was edited on 6/4/10 at 2:33 pm
Posted on 6/4/10 at 2:32 pm to Martini
quote:Technically bp doesn't lose a dime from this. The people that own the share take te loss. It doesn't reduce the asset base of the company, except for corporate treasury held stock shares.
They have lost $4 billion in equity.
quote:Perhaps, but not due to low stock prices. If the stock goes low enough they could face difficulties raising capital should they need to. They have a lot of hard assets they can sell before that becomes necessary.
It is very likely at some point they will seek bankruptcy protection.
Posted on 6/4/10 at 2:33 pm to tigerpurple84
quote:
It's the bonding/insurance company. They will get to the truth faster than anyone bc much more money will be lost.
This is precisely it. The reinsurers that are backing the surety bond have much more at stake and frankly they could take over the operation at any time. They are watching this very closely.
Posted on 6/4/10 at 2:35 pm to tigerpurple84
quote:If anything this. Kindaike how Texaco became Star Products to avoid paying the State of Louisiana a few years ago.
Most likely, BP will be dissolved and reorganized with new funding and essentially a clean slate.
Posted on 6/4/10 at 2:40 pm to notiger1997
quote:
It ain't happening and even if it does, I think there will be ways for the powers that be to sieze assets and such.
You are stupid and have no clue about business if you think this is true.
Posted on 6/4/10 at 2:41 pm to tigerpurple84
quote:
BP is a multinational corporation. A corporation's only purpose for existing is to produce profit for its shareholders. When a corporation ceases to meet that ONE criteria, the corporation ceases to be.
Hey Captain Obvious. You're not talking to the other stoners in your dorm room at 2AM. We already know this. It's very telling you think this is some kind of epiphany.
quote:
Do not get confused about this. BP is not in the business of drilling for oil. It is in the business of making money.
This is just too funny.
Keep these revelations coming! quote:
So yeah, they can say BP is going to pick up all the costs. But if there's no BP any more, who's paying the bills?
BHO Jangle's stash.
Posted on 6/4/10 at 2:41 pm to Taxing Authority
quote:
Technically bp doesn't lose a dime from this. The people that own the share take te loss. It doesn't reduce the asset base of the company, except for corporate treasury held stock shares.
Yeah, I'm waiting for BP to start buying back lots of its stock because it is undervalued. I'm sure at a certain price point it will. Only to reissue at a much later date, when the price is back up.
Posted on 6/4/10 at 2:56 pm to Martini
Some very informative answers, then there are some not so.
It will interesting to see how this plays out
It will interesting to see how this plays out
Posted on 6/4/10 at 3:39 pm to tigerpurple84
quote:
You are stupid and have no clue about business if you think this is true
Thanks for the kind words.
Posted on 6/4/10 at 7:11 pm to notiger1997
I might become violent if this happens....what was the name of that restaurant Heyward was in again
Posted on 6/4/10 at 10:48 pm to tgrbaitn08
quote:
What happens if BP North American files for bankruptcy??
You will pay for it eventually.
You
ewe
u
yew
yes.....you.
Ok...maybe we (oui?) will pay, but you get the picture. Wee lose.
Posted on 6/5/10 at 11:26 am to Martini
quote:
It's the bonding/insurance company. They will get to the truth faster than anyone bc much more money will be lost.
Actually my above post is wrong. They are self insured. There is no bonding company or surety. It is on their shoulders for the percentage of the ownership which is said to be around sixty percent.
This post was edited on 6/5/10 at 11:28 am
Posted on 6/5/10 at 11:47 am to Martini
quote:
sixty percent
65% BP E&P
25% Anadarko
10% Japanese Company (Mitsui?)
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