Will BP go bankrupt because of the Gulf oil spill?

BP is under intense financial strain as a result of the ongoing oil spill in the Gulf. The British energy company has lost nearly $100 billion in market value in the months since the April 20 explosion on the Deepwater Horizon oil rig, which caused 200,000 barrels of oil a day to gush into the Gulf.

As of June 2010, BP had paid out about $2.35 billion in cleanup and compensation costs related to the oil spill. With two relief wells still under constructions, those costs will continue to soar. BP also faces up to $15 billion in penalties under the Clean Water Act and has pledged to place up to $20 billion in an oil spill compensation fund. The company already faces more than 200 lawsuits related to the spill, and other cases are certain to follow.

The company has said bankruptcy is not an option but the situation would likely lead to the dismissal of the company’s current leadership. However, seeking court protection is always a possible tactic for companies under severe financial pressure. Still, a bankruptcy filing wouldn’t protect BP from liability for clean up costs and damage from the disaster. Claims would be paid out with the oversight of federal bankruptcy court.

If you have a claim related to the BP oil spill, it’s time to talk to an experienced oil spill lawyer and file a claim now.

The unprecedented harm of the BP spill will continue to affect property, business and the environment for years to come. The Oil Spill Task Force, sponsored by Arnold & Itkin LLP, coordinates the financial, legal and investigative resources needed to represent the claims of businesses and individuals whose livelihoods and property are threatened by the BP oil spill.

To discuss your case, call 888-498-8212 or use our online contact form. The lawyers of Arnold & Itkin LLPfocus on representing your financial interests in claims against BP.

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