La.'s state treasurer asks for BP bankruptcy plan

Source: Associated Press

State Treasurer John Kennedy is urging Louisiana officials to prepare for the possibility oil giant BP could file for bankruptcy because of the massive spill in the Gulf of Mexico.

Kennedy sent Gov. Bobby Jindal a letter this week pushing him to devise a plan to deal with the oil spill cleanup and response efforts in the event of a BP PLC bankruptcy and offering his assistance in developing that backup plan.

"I know BP's said they won't go into bankruptcy. I hope they're telling the truth. They weren't truthful about the extent of the spill," Kennedy said in an interview Friday. He added, "We need to be ready, and I don't think we are. We can't miss a beat on this cleanup."

A Jindal spokesman said the governor's office asked Attorney General Buddy Caldwell several weeks ago to research the state's options if BP were to make a bankruptcy filing.

"We are actively planning for that contingency. However, it involves legal strategy which we can't discuss at this time. We will be in touch with Treasurer Kennedy on this issue," said Jennifer Roche, a spokeswoman for Caldwell, in an e-mail.

Read more: http://www.businessweek.com/ap/financialnews/D9G9BBS80.htm

Either bankruptcy, then re-organization
or
re-structuring the company so the Gulf drilling part is a separate entity.

will probably be the cost of insurance for oil companies. Insurance will become much more costly. And as mega disasters mount, be they natural or man made, the insurance industry itself will be at bankruptcy's door is my guess.

Personally, I'd like to see some other recovery solution, besides insurance, emerge from all this. For instance, much more emphasis on prevention and deterrence.

need to be prepared for a BP bankruptcy. Actually, BP has plenty of assets, but that would not stop it from trying to get out of this any way it can. They also need to guard against BP's simply selling its stock and assets. There may be ways to sell out that would cheat claimants.

The Justice Department needs to file criminal charges asap and take BP's assets, especially its pipeline, everything. And they need to do it tonight if possible. There is no time to spare.

bankruptcy---at least we would get something out of BP before it becomes a penny stock and has to hold a fire sale on everything it owns.

Remember the southern business Peanut Corporation of America?

No? They killed 9 people, sickened many thousands of others and damaged countless other businesses all around the country- and abroad at the worst possible time.

They declared BK walked away- Holder's given 'em a pass (along with tons of others), despite mountains of evidence and congressional hearings.

Why should BP expect to be treated any differently?

They will probably not file for relief under Chapter 11 anytime soon.

They will have a BP friendly judge, drag everyone to Houston and wear them out for the next 20 years with dilatory tactics.

Unfortunately, appeals from the USDC for the Southern District of Texas go to the Fifth Circuit Court of Appeals which is quite "conservative"