Reply #32: Reuters: "British PM Fears BP's Destruction, Stock Plunges" [View All]

[Elmore Furth]

BP only has $12 billion in accessible assets. Theoretically, BP could dodge billions in payouts to Gulf area businesses, residents, along with state and federal agencies, if the company sought Chapter 11 bankruptcy. BP currently has a net worth of about $81 billion but most of those assets are locked up in illiquid assets. Analysts at Credit Suisse have estimated the total clean-up cost at $23 million – but that doesn’t factor in billions in claims resulting from lost tourism in Alabama, Florida, Louisiana, Mississippi and Texas.

Well, I guess the plan B is to stick all of us with the bill.

TORONTO/HOUSTON (Reuters) - Fearing the "destruction" of BP Plc, British Prime Minister David Cameron said on Friday some certainty is needed over its costs from the Gulf of Mexico oil spill even as the company's stock plunged to a 14-year low.

Total share losses for the embattled British energy giant since the worst oil spill in U.S. history began on April 20 stand at around $100 billion, more than halving its market value prior to the disaster. BP stock on Friday fell more than 6 percent in London and New York.

BP plans to nearly double next week its capacity for siphoning oil gushing from its ruptured deep-sea well, but a looming storm is raising fears the effort could be disrupted for days or weeks. BP and the U.S. government nervously watched as an approaching low-pressure system over the western Caribbean Sea gathered strength.

Cameron is due to meet on Saturday with U.S. President Barack Obama on the sidelines of the G8/G20 summits in Canada. He has pledged to discuss BP with Obama, who has been highly critical of the company. British business and shareholder groups have clamored for Cameron to defend the company.



British PM Fears BP's "Destruction", Stock Plunges