Many are wondering what is really happening with BP (NYSE:BP) and the claims that they are filing bankruptcy. Matt Simons, oil industry insider and the energy focused investment bank Simmons & Co. told Fortune magazine that BP will eventually run out of money from lawsuits, oil cleanup costs, among other expenses.
"They have about a month before they declare chapter 11 bankruptcy," said Simmons. "One really smart thing Obama did was about three weeks ago he forced BP CEO Tony Hayward to put in writing that BP would pay for every dollar of the cleanup, he continued, "but there isn't enough money in the world to clean up the Gulf of Mexico. Once BP realizes the extent of this, my guess is they'll go into panic and file chapter 11."
In less than seven weeks BP has lost over half its market value, this is BP's lowest level since 1996. Their bonds are also being crushed. Before April 22nd, the day the Deepwater Horizon sunk, BP shares were being traded above $60. With yesterdays close, there was a loss of 16 percent at $29.20.
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