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Started By
Message
BP Bankruptcy?
Posted on 6/8/10 at 8:12 pm
Posted on 6/8/10 at 8:12 pm
BP Bankruptcy
I was one of the first people to laugh at this suggestion, but this article brings up a few good points.
I was one of the first people to laugh at this suggestion, but this article brings up a few good points.
5
Posted on 6/8/10 at 8:23 pm to jennBN
Not to hijack your thread but how are things in OB? I'm thinking about taking the family down Sunday but don't want the 2yr old playing with tar balls. I've heard different reports...
Posted on 6/8/10 at 8:34 pm to DaphneTigah
No worries on the hijacking. For right now only small tarballs and the occasional oil smell. We have had alot of cancellations, and the people visiting our condos have caused a mess of problems by tracking oil in and trying to wash it off in the pools. Judging from reports, we are still very fortunate compared to other areas. It really seems to depend where you are on the beach. I can tell you the city is fighting like hell to make everything seem perfect still. I am still stuck in Los Angeles though, the best person to actually check with is TideHater. Good luck to you and please report back...
Posted on 6/8/10 at 9:13 pm to jennBN
I'm sorry but even if you take the high number that article uses $40 Billion, the company still can cover that in just a few years with no change to their operations, 2 years if they cut back the dividend, and one year if they cut back on development. BP is way to big to be brought down by something like this. The charge would need to be 5 to 10 times that amount to go under.
Posted on 6/8/10 at 9:26 pm to C
+1
Posted on 6/8/10 at 9:30 pm to GREENHEAD22
Posted on 6/8/10 at 9:37 pm to jennBN
I was the first one to suggest shorting BP stock or buying Puts, which I did. 
Posted on 6/8/10 at 9:40 pm to C
+100000, including how they will amortize the loss of many many years.
Posted on 6/8/10 at 10:32 pm to CptBengal
I would like to think that they are to big to fail, but it seems like I have heard that before....anyway, my concern is their lack of cash on hand. 12 billion won't go to far with FL. asking for a billion this week and the relief wells being at least 6 weeks away. I sincerely hope they do not bankrupt, but I also would not be surprised if they have a plan to avoid some of the losses they are facing...
Posted on 6/8/10 at 10:41 pm to jennBN
I don't think it would hold up. The Pres has put BP on the hook for the damages, and I don't see some bankruptcy judge letting them off the hook with a Chpater 11. BP has deep pockets, and like C said, the debt should be easily recoverable in the long term.
Dec 07, BP had $88B in retained earnings, and BP had $20B in net earnings for 2009. The FL tourism and LA fishing is only worth about $65B total; so, I think it is unlikely that damages that can be claimed will exceed BP's ability to pay.
Dec 07, BP had $88B in retained earnings, and BP had $20B in net earnings for 2009. The FL tourism and LA fishing is only worth about $65B total; so, I think it is unlikely that damages that can be claimed will exceed BP's ability to pay.
Posted on 6/9/10 at 9:33 am to C
BP paid out 10.9 billion to shareholders last year in dividends. They will cut their dividends which caused their stock to tank over the last few weeks. BP is huge guys bigger than what most people think.
Posted on 6/9/10 at 9:18 pm to sheek
Ok, so they lost another 15% today. If not bankrupt, at what point are they possibly takeover material? I can't believe their stock is under $30.
Posted on 6/9/10 at 9:21 pm to jennBN
quote:
If not bankrupt, at what point are they possibly takeover material? I can't believe their stock is under $30.
Seriously?
Posted on 6/9/10 at 9:22 pm to sheek
quote:
They will cut their dividends which caused their stock to tank over the last few weeks.
Bp paid out last quarter, and are paying out dividends this quarter, AND PLANNING TO PAY OUT NEXT QUARTER.
NO COMPANY PAYS DIVIDENDS IF THEY ARE GOING BANKRUPT. FACT.
Posted on 6/9/10 at 9:27 pm to CptBengal
quote:
NO COMPANY PAYS DIVIDENDS IF THEY ARE GOING BANKRUPT. FACT.
So then they are in fact a profitable entity that could attract a takeover? There 52 week high is $60, so it seems as though you could purchase the stock for 50% discount. Either they are in good shape or really shitty shape, Please elaborate on your above posts. I really am interested in your take on it. Oh and is the federal govt not seeking an injunction to stop those dividend payments?
Posted on 6/9/10 at 9:27 pm to CptBengal
BP has an extremely wide array of assets they could sell to pay down debts incurred from the spill if it even got to that point. For starters they could sell the assets they just bought from Devon recently for $7 billion. I'm sure they have similar non core asset packages all over the world that could be marketed for cash.
This post was edited on 6/9/10 at 9:35 pm
Posted on 6/9/10 at 9:28 pm to CptBengal
quote:
Seriously?
Not impossible.
This post was edited on 6/9/10 at 9:30 pm
Posted on 6/9/10 at 9:30 pm to jennBN
quote:
Oh and is the federal govt not seeking an injunction to stop those dividend payments?
I think the British parliament will have an issue with that.
Posted on 6/9/10 at 9:31 pm to jennBN
quote:
BP PLC will pay shareholders $2.63 billion in dividends on June 21
Yep, companies pay billions in dividends if they expect takeovers or going bankrupt
quote:
Analysts expect number to rise to $10 billion by year end
And continue to pay if going bankrupt. FAIL.
Posted on 6/9/10 at 9:33 pm to Bob Sacamano
quote:
Not impossible.
It's possible I could spontaneously slide between dimensions too.
But the probability is infentsibly small.
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