Will BP Declare Bankruptcy To Avoid Gulf Coast Liabilities?

There is a high chance that BP could file for Chapter 11 bankruptcy and the result would be an “absolute horror” for the government.

…A practice, told me that if he had BP’s ear, “I’d advise them to explore the option of bankruptcy.” If he had the government’s ear, he’d tell them to stop berating the company to the point where BP would find it appealing to use bankruptcy to limit its liabilities.The specter of Chapter 11 bankruptcy terrifies Gulf residents because it could allow BP to delay, or even avoid, paying billions of dollars to businesses and individuals affected by the Gulf spill. The chapter is specifically for companies in temporary financial trouble who can reemerge as viable if they receive new funding, cancel burdensome contracts and delay, restructure, or wall off repayment obligations.I spoke with Kaufman about the possibility of a BP bankruptcy yesterday. Here is an edited transcript of our conversation yesterday, which includes further clarifications from an email follow-up with Kaufman this morning:Let’s say you’re advising BP. What would you tell them to do?I’d advise them to explore the option of bankruptcy. I only…

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Will BP Declare Bankruptcy To Avoid Gulf Coast Liabilities?

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