Louisiana prepares a Disaster Backup Plan for BP Bankruptcy

----June 11, 2010

" State Treasurer John Kennedy sent Governor Jindal a letter requesting the state start working on a back-up plan to pay for the clean-up costs just in case BP files for bankruptcy.

Kennedy says he's not saying for certain that would happen, but adds if it does, every clean-up effort would come to a stand-still and the state would be left with the financial burden.

"We have to look at a possible bond issue, a line of credit, discuss legislative authority if that's needed." Kennedy said.

He further added, "the legislature is in session now we need to take advantage of that , what role the federal government would play or how much they could put up."

In Kennedy's letter to the Governor, he pointed out that BP has a company net worth of 81 billion dollars but most of its assets are illiquid, in other words, hard to turn into cash.

Joseph Enclade, one of the fishermen now depending on BP for a pay-check since the oil spill, says he too wonders if BP will have enough money. Enclade says, "You never know, big businesses they can fall, they can move on, they're foreign."

But Tulane University Economics Professor, Peter Ricchiuti says its unlikely BP would go belly up.

"Its a financially sound company. The stock is worth 100 billion dollars. They're all over the world. This year 2010 most analysts expect it to generate a cash flow of 30 billion." he said. Ricchiuti added, " the only ways I could see that situation is if it made some kind of legal maneuver."

Given the dire circumstances facing the Gulf, Fishermen Enclade, hopes BP doesn't make such a move, adding he doesn't know how much more he and many other can take. "

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[edit on 12-6-2010 by manta78]

reply to post by manta78


I'm glad Tulane added that their facts. That would be a supreme injustice if they wrecked our ecosystem then claimed they had no money to finish cleaning it up.

reply to post by glitchinmymatrix


I agree.
2nd.

[edit on 12-6-2010 by manta78]

AT least someone is thinking as Mr. Simmons and I and many others believe this will be BP's next move.....I really hope not and prove they are part of the human race and/if they stick to the original script and prove by actions to hang in toward the bitter end define as NO MONEY left and have no choice except Chapter 11. I will forgive them, probably most will not. However last time I check we all make mistakes.

At same time some will and must go to jail that is not changing.

reply to post by jeffrybinladen


Come on, sure people make mistakes, but usually they impact a very limited amount of people, not several million people. When you make mistakes this huge, your soul is on the line.

Originally posted by dfens
reply to post by jeffrybinladen

 

Come on, sure people make mistakes, but usually they impact a very limited amount of people, not several million people. When you make mistakes this huge, your soul is on the line.

I undertand completely

as i say MOST WILL NOT

BP has 10 years of restoration, and unfortunately people will be ruined yet humans are like bums for oil so they also share blame PLUS MMS criminals..all of this we talk about relentlessly on ATS.. I for 1 am now watching BP like a hawk,,, and they better be staying on course. If we keep pounding them BP could give up and run-away so we should probably give them breathing room.

AGAIN though all the stuff with the press and everything else makes me very very afraid.

reply to post by jeffrybinladen


Maybe the treasurer in Florida is right to be concerned about a possible bankruptcy filing after reading this:

June 4, 2010
"BP Venture's Rusia Petroleum Files for Bankruptcy"

"By JACOB GRONHOLT-PEDERSEN
MOSCOW—BP PLC's Russian oil joint venture, TNK-BP Ltd., said Thursday the company operating the huge Kovykta gas condensate project in Siberia has filed for bankruptcy, as talks to sell the field to a state company drag out."

Also from the article:

"TNK-BP is Russia's third-largest oil producer. It is half-owned by BP, and the rest is held by a group of Russian businessmen. It said it invested $664 million developing Kovykta, which contains about 2 trillion cubic meters of gas reserves."

And concludes:
"TNK-BP declined to say whether the bankruptcy filing could move the case forward, but said it would "provide an opportunity" to recover its investments."


Source:online.wsj.com...







[edit on 13-6-2010 by manta78]