U.S. District Judge Keith P. Ellison set the first deadline in a BP (NYSE:BP), telling the oil giant and investors they had to submit proposals for lawsuit leadership by October 27.
Ellison said at the hearing, “We should start with ideas about how to select the lead plaintiff and class counsel.”
This particular lawsuit centers around those holding U.S. shares of BP who claim the company understated the risks associated with its offshore drilling projects. Consequently the value of the ADRs were "artificially inflated," shareholders said.
On behalf of some plaintiffs, attorney Stanley M. Chesley said, “BP’s procedures for minimizing its financial losses from drilling rig problems were no more than fantasies. BP was simply not the enterprise that its public communications pictured.”
For purposes of gathering evidence and pretrial decisions, Ellison consolidated the investor lawsuits in August.
Shareholders assert BP and its managers senior executives and directors are responsible for as high as $50 billion in lost stock value because of the Gulf of Mexico oil spill.
It'll be interesting to see how that is handled as the share price and value of the company continue to rebound.
Showing posts with label BP Investors. Show all posts
Showing posts with label BP Investors. Show all posts
Wednesday, October 13, 2010
Tuesday, October 5, 2010
Bond Market Likes BP's (NYSE:BP) Bonds, Future
Now that a clearer picture of the liabilities concerning the BP (NYSE:BP) oil crisis has emerged, and things are beginning to settle down for the oil giant, raising capital through bonds has revealed the markets like what they see for the future of the company, and have been snapping up the two bond offerings of the company over the last week.
With bankruptcy appearing to be a non-event going forward, a lot of positive sentiment from the market is now lingering over the company.
This is a global phenomenon, as measured by who has invested in the bonds, as they're from all parts of the world. The $6 billion invested in the bonds sends a clarion consensus that the market believes BP will remain solvent.
It wasn't just that though, as the bonds were highly oversubscribed, suggesting there's a lot of confidence in the future of BP by investors.
In the first offering of $3.5 billion last week, approximately $12 billion in orders were made, giving an idea of the demand for BP debt. On Monday the sale of bonds generated over four times oversubscription.
The conclusion being made by the actions of the market are while the liabilities of BP are enormous, they're more than big enough to pay for them.
One remaining huge factor for BP is whether or not they're designated as grossly negligent concerning the oil spill. If they aren't, at most they would pay a fine of about $4.5 billion. If they are found grossly negligent, that would soar to $17.5 billion. They're in the midst of negotiations with the U.S. government at this time concerning that.
But the billions raised through selling assets, issuing bonds, bank credit lines and the suspension of their dividend has the bond market believing BP can handle whatever comes their way.
With bankruptcy appearing to be a non-event going forward, a lot of positive sentiment from the market is now lingering over the company.
This is a global phenomenon, as measured by who has invested in the bonds, as they're from all parts of the world. The $6 billion invested in the bonds sends a clarion consensus that the market believes BP will remain solvent.
It wasn't just that though, as the bonds were highly oversubscribed, suggesting there's a lot of confidence in the future of BP by investors.
In the first offering of $3.5 billion last week, approximately $12 billion in orders were made, giving an idea of the demand for BP debt. On Monday the sale of bonds generated over four times oversubscription.
The conclusion being made by the actions of the market are while the liabilities of BP are enormous, they're more than big enough to pay for them.
One remaining huge factor for BP is whether or not they're designated as grossly negligent concerning the oil spill. If they aren't, at most they would pay a fine of about $4.5 billion. If they are found grossly negligent, that would soar to $17.5 billion. They're in the midst of negotiations with the U.S. government at this time concerning that.
But the billions raised through selling assets, issuing bonds, bank credit lines and the suspension of their dividend has the bond market believing BP can handle whatever comes their way.
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