Monday, June 28, 2010

BP bankruptcy is a real fear
~Mark Moseley, The Lens

~Editilla doesn't believe it for 1 Cockney Second.
Such an idea smells rotten like a can of Valdez Herring redder than the Queen's Petticoat. When is the last time anyone had a can of Valdez Herring? Not since Exxon destroyed the catch! Cha'Ching! Is Exxon Bankrupt? Nooooo.
We believe it behooves BP to grossly Overstate their costs in this Drilling Failure. It serves them on a number of levels, the least being Settlements/Fines/Penalties based on barrels spilled, number of animals killed and miles of coastline impacted. They have "barrels spilled" under control with the use of Dispersant, to wit: who knows now as they grossly understated the Flow Rate from the beginning. They have the "number of animals killed" under control because their crews are burning them and even collecting them off of beaches. "Miles of coastline impacted" is fairly under control with the Dispersant, Coast Guard Collusion and PR Advertising.
BP says now they have spent $2.5 B on this Eruption, yet not one reporter has asked them: "Oh yeah? Where?"
This will not be a bankruptcy but a Short Change. These Assholes just want to "Walk on their Tab" after trashing the bar.
Click to Enlarge ~Special thanks~Infrastructurist
~BP US Pipelines and Logistics ~Pipeline Assets

BP, Bayous and Byways: Dispatches from the Gulf Coast
~Facing South

BP Oil Gusher has changed everything, residents say

James Carville-Beyond Rogue ~Gambit

Modern Pirate Demands: Respirators for Fishermen Now! End the use of Corexit 9500! ~Plutonian Mac

Country's top chefs visit Grand Isle to back Gulf seafood
~Brett Anderson


oyster said...

The mighty can fall pretty damn quickly if/when stocks crater, and counterparties start selling shares and demanding payments. How liquid is BP, is the question? Can't the situation catastrophically worsen in an expensive way?

There's already some talk of a merger with a strategic merger with China's State Oil Co., or separating BP America as an arms length toxic asset to preserve the UK division, or instead of B/K, insolvency proceedings-- or, just going to court for thirty years as the cost-effective alternative.

Editilla said...

China is going for BP's Asian assets. That was reported over a week ago:
Here is their own list of pipeline assets:
Bankruptcy for BP will be Bait and Switch.
I don't fear them going Bankrupt, I see them Walking out on their Tab.

oyster said...

Illiquid assets (pardon the pun) don't pay the bills. B/K or insolvency proceedings might be the manner in which they walk out on their tab.

Editilla said...

If this liquid asset doesn't pay the bills then what the fuck is BP doing in our Gulf, in Asia and most recently Brazil with the rest of those thirsty bitches?
Bullshit. They aren't going to leave the Black Gold. They just don't want to pay their tab after cleaning out the bar.

Sop811 said...

I suspect there are clauses in BP's lease agreements with the MMS that a BK voids the lease. I'm not saying this will stop BP from filing Chapter 11 but they will not be able to file and then skip out without losing those leases, which are of great value.

The lawyers I am speaking with envision something along the lines of the Manville Trust which was funded by Johns Manville and resulted from the Manville BK. It provided a long term money solution to absetos problems.

Editilla BP has $7bn in cash at 3/31/10 and that cash was substantially all of BP's working capital. They have spent over $2bn so far. Most of their assets are in their oil reserves which are not quickly monetized.

What a fine mess eh?