Tuesday, June 8, 2010

BP (NYSE:BP): Declaring Bankruptcy

Andrew Ross Sorkin, writes that Wall Street is starting to look seriously at BP (NYSE:BP) and their potential to file bankruptcy.

"The idea that BP might one day file for bankruptcy, particularly as part of a merger that would enable it to cardon off it's liabilities from the spill, is starting to percolate on Wall Street. Bankers and lawyers are already sizing up potential deals (and counting their potential fees.) Given the plunge in BP's share prices, the company has lost more than a third of its value since Deepwater Horizon blew. Some bankers and analysts say BP is starting to look like take over bait. The question is, who would buy BP given its enormous potential liabilities," said Sorkin.

Federal Reserve chairman, Ben Bernanke predicts, "we'll have continued recovery but it won't feel terrific." He offers cautious reassurance that the U.S. recovery is on track, despite the turmoil we've seen in the financial markets. "There seems to be a good bit of momentum in consumer spending and investments," says Bernanke.

Although BP isn't verifying or denying weather they are declaring bankruptcy or not, they seem quite confident. Despite the fact they still have yet to contain the fuel spill spewing onto the seabed, have already spent over a billion dollars, and haven't even started on the fuel cleanup, or dealt with the legal claims that are pouring in.

78 comments:

  1. this article is full of shit

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  2. how does this get on the google stocks news feed?

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  3. Agreed. This is trash; and google need to do a better job in filtering their feeds.

    Aren't there laws against distributing these kind of unfounded rumours?

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  4. Stupid article is stupid.

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  5. It makes me sick that this type of propaganda activity is somehow able to slip through and be on the Google's top story for BP.

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  6. RE: evander herndonfeild said...
    "this article is a waste of bandwith"

    WELL SAID lol...BP makes like $56 Million dollars a day. Waste O Time

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  7. The title on google finance is "BP declaring bankruptcy". Absolutely BS...

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  8. No this is all true. It was posted by Deborah. "Deborah" is an infallible source. Check "Deborah's" credentials. She really nailed down the notebook on her blog.

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  9. better watch out about the legal ramifications of rumors.

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  10. "Although BP isn't verifying or denying weather(sic) they are declaring bankruptcy or not"

    Really? They are not confirming the weather? I did not know BP were in the weather space.

    Thanks for your great insight on the BP situation.

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  11. lol always nice to get a laugh. if it was a merger they wouldn't go bankrupt immediately before it. bp can cover the costs of this spill out of the change they find between the back seat of their car and still have enough left over for some mcBalls. read a book son

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  12. haha, apparently this is just a late april fools joke

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  13. I can't stop my knee from jerking but the "weather" on the Gulf Coast is beautiful...lol. What a load of crap!

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  14. even if BP got slapped with fines worst case scenario is that it doesn't pay dividends. the company is sitting on billions of pounds in reserve and while the spill is a major issue for them, this in no way could lead to a bankruptcy this article has no merit what so ever

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  15. How do you report this crap to Google?

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  16. administrator : please remove this garbage, this is not what we need today!

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  17. You all know that Deborah - the author - is shorting BP's stock.

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  18. Hello Deborah, here is some info for you: BP makes a profit of USD 20 Billion every year. The total cost estimated for the spill including the punitive datamages is 10-15 billion tops. BP will cover the loss in less than an year.

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  19. "Although BP isn't verifying or denying weather "

    If you can't tell the difference
    between "weather" and "whether", you're likely not a source of a world-breaking news story.

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  20. While the headline of this blog is totally misleading I did research Sorkin's articles at the NY Time website and he did write about the endless possiblities for BP's future. Pure speculation but here's a link to the article:
    http://www.nytimes.com/2010/06/08/business/08sorkin.html

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  21. Was this written by a 5th grade student? Irresponsible journalism. Google, please remove.

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  22. No offense, but those who think that a BK is out of the question obviously do not work in institutional finance. This isn't a rumor...its a fact. A BK does not have to happen due to a forced liquidity event...companies have been know to file BK simply to shed environmental liabilities. Take a look a the Kerr McGee/Anadarko/Tronox situation. Idiots calling people idiots...its whats considered dumb money.

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  23. Don't know about Deborah with her 'weather', but Andrew Ross Sorkin, despite his young age (33), seems to have some serious credibility (Wikipedia).
    I get the feeling most posters here are not seriously considering the total potential liability of BP and the attraction of capping (sorry, pun intended) that liability.

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  24. People need to be careful. This article is not a joke, although the subject is. For the last few weeks since mid-May, if we look at the bombardment of negative news, it looks like entire western hemisphere is coming to halt. I believe this kind of news are intentional and exaggerated to generate fears among retail investors. Remember, investment banks and institutional investors can make money faster in downward momentum.
    Long story short, use your head.

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  25. so annoying that this kind of nonsense was able to make it on google finance....

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  26. Google really shouldn't post stories from blogspot onto their finance section. This probably cause alot of people to pull the trigger so it is lol.

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  27. This is pure speculation to drive the stock down. The media is making my ill with all this unfounded and unneeded negativity, please just report the facts and let the people form their own opinion. I miss the days when company earnings actually meant something, not the latest agendas from Wall Street.

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  28. WTF!!!! THIS IS SOME BS! BUY MORE BP STOCK. CAN'T BELIEVE THEY PRINT THIS SHIET.

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  29. Andrew Ross Sorkin is an idiot. The BIO on him??? Written by him. He even put in a controversy section about himself. He doesn't know jack. Guys 33 and he's a business writer. He'll write anything that will attract readers. BUY BP, stop reading a douchebags OPINION!

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  30. Serious credibility?

    The dudes a hack ...

    http://en.wikipedia.org/wiki/Andrew_Ross_Sorkin

    I thought he may actually have a degree in journalism or MBA. Surprisingly, Andrew does not. He 'does' have an email and online newsletter (aka web blog).

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  31. BP won't file for bankruptcy. It has the earnings power to weather the storm from the oil spill. A merger may be possible but in another year or two.

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  32. this is totally unnacceptable. google feed must better filter "news" of this kind. we kind have any kind of idiot declaring tha bp is going for bankrupty. maybe this clown take a look at their balance sheet first then talk for major companies

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  33. It's possible don't fool yourself, the BP pipe is still leaking huge amounts of OIL , what if the releif wells don't work, what if this well is a problem and cracks wide open?

    right now it's only the worst spill in US history, it can easily get much much worst.

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  34. Just rubbish to benefit speculative traders.

    BP remains a strong player with extremely low market cap with high value cap resources. Do the maths yourself!

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  35. "...the fuel spill spewing onto the seabed..."

    Oil floats... so... yeahhhh.

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  36. Andrew Ross Sorkin should be sued under the Securities Exchange Act of 1934 Section 18. This section addresses the Liability for Misleading Statements. Here I quote verbatim...."Any person who shall make or cause to be made any statement in any application, report, or document filed pursuant to this title or any rule or regulation thereunder or any undertaking contained in a registration statement as provided in subsection (d) of section 15, which statement was at the time and in the light of the circumstances under which it was made false or misleading with respect to any material fact, shall be liable to any person (not knowing that such statement was false or misleading) who, in reliance upon such statement, shall have purchased or sold a security at a price which was affected by such statement, for damages caused by such reliance, unless the person sued shall prove that he acted in good faith and had no knowledge that such statement was false or misleading."

    This is shabby reporting by an individual who holds himself out as a professional.(?) He also makes such statements on CNBC. Should CNBC be part of the class action suit filed by all those who saw the statement and sold?

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  37. http://www.sec.gov/news/press/2009/2009-118.htm

    I will be reporting this to the SEC.

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  38. Everything that everyone else said prior...plus unlikely takeover target due to antitrust actions due to the monopoly sized firm.

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  39. The author of this blog should be fined. This is getting really old. Reminds me of the conscious planting of a rumor that China was considering selling its EU bonds; made national news, sparked a miserable sell off, and the next day it was just a rumor. No follow up. No investigation of the source of the rumor. Nothing, just fear mongering success for short sellers. BS!!!

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  40. Bankruptcy, possibly via Chapter 15 (a new addition to the bankruptcy code), is a serious possibility. Consider the enormous amount of economic devastation the spill will cause in the Gulf region - destroying the fishing and tourist industries, crushing real estate values, and threaten public health. The negative effect on the Gulf region is beyond sad, and US Government, Gulf residents, and their lawyers will demand more than a pound of flesh...

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  41. OH MY GOD ! I saw the stupid google stock quote headline "BP Declares Bankruptcy" and I was only seconds away from selling all my BP stock! What the hell is this? I Just bought BP stock Monday at open and I check the price today and see that's it's down almost trip over my own feet running to my Etrade account to virtually shout "SELL SELL !" Because of this headline. Luckily I read this ridiculous article probably written by some Arabian oil company and decided to do more research before throwing my money down the panic toilet.
    WTF ?

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  42. absolute garbage. i don't know who this person is and how the hell her story got onto google but i feel dumber for having read it. BP's liabilities will be spread over a VERY long period of time. True, they might lower their dividends and retain earnings, but to say that they're close to bankruptcy just shows that this person did not do her homework and just wants to be heard. absolute garbage.

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  43. I was the one who posted that this is absolute garbage. Please do the BP shareholders a favor and delete your story because you're only confusing people on Google.

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  44. BP is trading at 5 times forward earnings, compared to 10 to 12 times for competitors. It's below its March '09 lows. BP has lost more value than the entire market cap of McDonalds and still has twice the market cap of McDonalds. This company is a MONSTER, that isn't going anywhere for a LONG time. BP at $34? Back up the truck and pile her in boys. I bought yesterday and eagerly bought more today. If it goes down another 10% I'll buy twice as much. Scale into this beast and get rich. I'm predicting a $150% return in the next two years.

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  45. Alien invasion of Earth in 6 hours from now is a serious possibility. "Deborah", you are as daft as Bonnie Hoxlie, don't even bother trying to justify your asinine stupidity for posting this. If you made any trade in BP you will be investigated. I think you is too retard to work for anyone hedge fund, duherrrr...

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  46. Andrew Ross Sorkin is a fucking piece of shit.

    Go back to school and learn how to report you dumbass.

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  47. So BP is doing the weather now... lol

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  48. This article is full of shit and full of spelling mistakes.

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  49. Deborah is obviously short on BP. The full article is available here:
    http://www.nytimes.com/2010/06/08/business/08sorkin.html

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  50. An SEC investigation is demanded here about this website and this author - immediately.

    This is patent BS and an effort to manipulate stock prices.

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  51. Retarded, what a waste of time..There's a 0% chance BP would file bankruptcy

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  52. Thank you for your submission to the Division of Enforcement at the United States Securities and Exchange Commission in Washington, D.C. We appreciate your taking the time to contact us. This automated response confirms that you have successfully submitted information to the Division of Enforcement. You can rest assured that an attorney in the Office of Internet Enforcement will review your information promptly.

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  53. Think about this... who owns the majority number of BP stocks? and who owns the majority number of whatever company is going to clean the oil spill stocks? This is all BS.

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  54. haha, this idiot author can't even spell 'whether'. Like anyone will listen to fool's propaganda.

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  55. The only thing good about this article is that it might instill some panic and we might be able to get some good prices!

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  56. I hope BP sue you and you end up brankrupt

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  57. Can't be a serious article - school boy spelling, school boy article!
    Whether NOT Weather!!

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  58. Is this another case of the American Press trying to reduce the share price of a foreign company in the hope that an American company can take them over...... I was a supporter of Obama.... not any more...
    Anyway as quoted above, BP will no way file....

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  59. What a load of absolute shite! This article is simply scare-mongering.

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  60. You can't even spell properly. Spelling "whether" as "weather" so I'll not be taking your points too seriously

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  61. you guys must be living on a different planet, this is a massive disaster that will cost billions to fix, I am sorry for the BP shareholders, but that's the risk you take, this is only the beginning, BP stocks could sink lower, in my opinion

    do a search on line and see for yourself, BP bankruptcy is being talked about everywhere.


    1/3 lost value? it's looking closer to 1/2 at this point, and the pipe continues to leak thousands of barrels every day

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  62. Im pretty sure it is going belly up. and the coast will never be the same. I feel bad for the stockholders they will pay a heavy price. SK

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  63. INFANTILE INSIPID IDIOTIC article. BP would be laughed out of any bankruptcy court! The judge would pee on himself from laughing so much. Even in worst case scenarios that I have seen, this would be the equivalent of a person who made $200k a year, a checking account with $8k in it, and additional assets of another $200k, delcaring bankruptcy for a $20k to $40k expense. The judge would simply tell the person "Just pay the bill."
    "Weather" or not you believe me is probably dependant on "weather" or not you can do 3rd grade math.

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  64. BP will go bankrupt and this is no joke. The more they dig into the spill the worse it gets and with their share price plummeting and their market cap fading watch out. I would be scared to own this stock after today. I am selling everything while I can. No more sleepless nights wondering where this stock will end. AUDIOS BP

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  65. If they are reserving cash why are they buying JAC chemicals business in asia?

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  66. What is this.............,can't getting what he is trying to say.

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  70. I really don't have any idea where the topic real discussion going on..
    Every thing seems useless..

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