BP ADRs Plunging As Two Rumors Of Imminent Bankruptcy Hit Market
BP stock getting hit with a variety of rumors as to the cause - one is that the culprit is a Fortune article, which quotes Matt Simmons (whom we have quoted before as being supportive of nuking the leak) that BP "has about a month before they declare Chapter 11. They're going
to run out of cash from lawsuits, cleanup and other expenses. One
really smart thing that 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. 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 that they'll panic and go into Chapter 11." The other rumor which is gaining traction, is that BP has hired a bankruptcy lawyer. Then again, seeing how today was the 1,293,498th time the Radioshack LBO rumor pushed the stock higher, all this media rumormongering should certainly be taken with a blob of oil.