Embattled BP asks 7 banks for $1 billion each

[sabra]

Source: Reuters

LONDON (Reuters) - BP Plc (BP.L) (BP.N), battling to plug a gushing oil well under the Gulf of Mexico, is seeking loans of $1 billion (676 million pounds) from each of seven banks to raise up to $7 billion, banking sources told Thomson Reuters LPC on Friday.

BP is raising capital for a $20 billion clean-up fund, said a different senior banker in the United States, referring to the escrow account that U.S. President Barack Obama demanded the company set up to handle damage claims.

BP has asked its main lenders to put a series of coordinated 1-year standby bilateral loans in place, one source said. This type of loan is made by individual banks to a company and are not syndicated.

Banks including Barclays, HSBC and Royal Bank of Scotland are working on loans of $1 billion each for BP, several banking sources said.

"BP is quietly approaching banks for the facility and it's a club deal," a second banker said. A third banker said that no U.S. banks were providing loans.

Read more: http://uk.reuters.com/article/idUKLDE65H1G420100618

[marmar]

1. Awww, I love it when corporate criminals turn to each other in a time of need.....

..... warms my heart.

[dflprincess]

11. It's nice to have friends you can turn to in time of need

Next they'll be making their franchises put little collection cans by the register to help - like people do to help others with medical bills.

[dipsydoodle]

2. They're also selling about £8 billion in assets

to fund the escrow a/c. Any buyers here ?

[James H]

3. Bankruptcy?

I wonder if BP isn't moving as much capital out of BP America as it can get away with, and then will abandon it? The Donald does this all the time.

[dipsydoodle]

4. has it moved any capital at all

out of BP America ?

[dipsydoodle]

8. Perhaps you enligthen us

on exactly how any company could make a wholly owned division bankrupt.

[debannbull]

10. my first thought immediately - cash grab now, cry poor later.

any hopes for serious econ recovery have been smothered by oil

[valerief]

5. You mean, the US Treasury isn't lending it out at 0% interest to BP? nt

[BR_Parkway]

6. Good - if no US banks are providing loans, GOP can't blame Obama

for "sucking up all the cash needed for small businesses to create jobs"

I wonder if that was part of the whole $20B deal

[bvar22]

7. The US Taxpayer Bailout of BP is coming.

Can't you just smell it in the wind?

The $20 Billion escrow account has all the markings of a Magician's Misdirection...like the mythical "Public Option".
Do you really expect the Ownership Class to bear the loss to their Portfolio ?
Believe me when I tell you that the Owners of BP stock, which includes Wall Street Banks and almost every single member of your Congress and Senate, are working furiously behind the scenes to ensure that BPs loss will be "Socialized".

Forgive my cynicism and suspicion, but every little piece of it was earned.
You see, I've been watching our "Two Party System" and "Centrist" Democrats far too long.


"If we don't fight hard enough for the things we stand for,
at some point we have to recognize that we don't really stand for them."
--- Paul Wellstone

[Iowa]

13. +1

[postulater]

9. Why does it need loans to do this? Doesn't it make that much profit in a day?

[KamaAina]

12. Bailout in 3... 2... 1...

:eyes: