----June 11, 2010
" State Treasurer John Kennedy sent Governor Jindal a letter requesting the state start working on a back-up plan to pay for the clean-up costs just
in case BP files for bankruptcy.
Kennedy says he's not saying for certain that would happen, but adds if it does, every clean-up effort would come to a stand-still and the state
would be left with the financial burden.
"We have to look at a possible bond issue, a line of credit, discuss legislative authority if that's needed." Kennedy said.
He further added, "the legislature is in session now we need to take advantage of that , what role the federal government would play or how much they
could put up."
In Kennedy's letter to the Governor, he pointed out that BP has a company net worth of 81 billion dollars but most of its assets are illiquid, in
other words, hard to turn into cash.
Joseph Enclade, one of the fishermen now depending on BP for a pay-check since the oil spill, says he too wonders if BP will have enough money.
Enclade says, "You never know, big businesses they can fall, they can move on, they're foreign."
But Tulane University Economics Professor, Peter Ricchiuti says its unlikely BP would go belly up.
"Its a financially sound company. The stock is worth 100 billion dollars. They're all over the world. This year 2010 most analysts expect it to
generate a cash flow of 30 billion." he said. Ricchiuti added, " the only ways I could see that situation is if it made some kind of legal
Given the dire circumstances facing the Gulf, Fishermen Enclade, hopes BP doesn't make such a move, adding he doesn't know how much more he and many
other can take. "
[edit on 12-6-2010 by manta78]