BP (NYSE:BP) Hazardous Spill Containment: Declaring Bankruptcy

BP (NYSE:BP) seems to be doing some good in their hazardous spill containment efforts, while there is much talk swirling around them declaring bankruptcy. They've brought in more ships that collect and store the oil that is being redirected to the surface. They are now collecting 15,000 barrels of the crude oil daily, that number is expected to increase to 20,000 barrels daily very soon.

There is also growing tension between the government and BP, according to a top executive at BP. All the while trying to keep up the morale of those working so hard to get control and contain the oil spill. Doug Suttles, BP's chief operating officer, thanked BP workers, government officials, as well as contractors at the command center. Suttles said, there are "big frustrations out there." It's a huge challenge, we're doing something that we hoped we'd never have to do, but we're doing something that no ones ever done before," he said. "And I want to say thank you, you guys are doing a tremendous job under horribly difficult circumstances."

Meanwhile, the oil slick continues it path along the shorelines. With hitting Louisiana, Texas, Alabama, and Florida causing beaches to be closed and fragile environmental habitats to be destroyed, it's now pushing its course on to the East Coast.

The Attorney General in Florida and the State Treasurer in Louisiana have requested BP to put $7.5 million in escrow accounts to be used for their residents as well as to compensate the states for damages now and in the future. As of March 31st, BP only had $6.8 million available in cash and cash equivalents.

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.