Getting to the bottom of the June 1 downgap is enough for me, we caught the run from the double bottom at 35 and change.
Anadarko Petroleum (APC) may be able to escape having to pay claims related to the Gulf oil spill if it can pass all the blame to BP plc (BP), according to an analysis by Covenant Review. an However, as the independent credit research firm points out, gross negligence is a high hurdle to prove.Here's the run in real time postings:
Covenant Review examined the October 1, 2009 Operating Agreement that governs the “Macondo Prospect”and reviewed relevant legal standards that may affect the relative liabilities of the three owners. It is not possible at this time to accurately predict how liability will be divided between these parties because too many facts remain unknown, the authors note.
However, their analysis finds that:
Covenant Review adds:
- Anadarko may escape contributing to claims and get paid by BP if BP was “grossly negligent” or engaged in “willful misconduct.” While those are tough standards to meet, the magnitude of the disaster and the bad allegations against BP may put Anadarko in a good position.
- The Operating Agreement calls for disputes between the parties to be submitted to arbitration, which means any direct dispute between Anadarko and BP will play out differently than it would in front of a jury and the influence of public opinion may be reduced.
1) Gross negligence is a high hurdle to prove....MORE
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