A short-term loan comes in handy for numerous individuals for unexpected expenses like car repair, a crown at the dentist or a traffic ticket. But when you are the culprit in the 2010 oil spill in the Gulf of Mexico, a short-term loan will always in handy. BP is talking to some banks to raise about $ 5 billion in short-term loans to help finance liabilities arising from the oil spill in the Gulf of Mexico, the Financial Times newspaper reported Thursday. By the end of last week BP had raised $ 20 billion in cash and credit to tackle costs from the spill, as outlined by the report.
Source for this article: BP looks for short-term loan to cover costs in oil spill cleanup by Personal Money Store
Short term loan are easy to determine, unless you are BP
For most people, getting a unsecured loans is easy. With a little online research some pretty reasonable rates can be found, but if you run an oil business with a criminally negligent sales record and are trying to purchase your way out of an environmental disaster, it’s a little tougher. It was reported by Investment Week that in seeking its $ 5 billion in short-term loans, BP is having to pay more than commonly charged by banks in margins and fees, individuals close to the transactions said. They noted the banks are holding the cards in this deal. Soon, BP is bound to be desperate for cash. As the undersea gusher continues unabated, banks appear to be much more concerned over the potential size of BP’s liabilities — so they are going to hold the oil business over a barrel.
BP wants instant cash
A unsecured personal loans or a payday loans no fax provides the instant cash most individuals have to prevent credit problems like missing a credit card payment, preventing a bank overdraft fee, or simply getting the car out of the shop to get to work. BP has much bigger problems. To solve it, according to Reuters, BP is looking at various debt-financing possibilities, which contain extending bank credit lines as much as $ 7 billion. Earlier this year, the oil spill company had considered a corporate bond offering and additional asset sales. Those ideas are on hold for the moment. Despite the fact that it is trying to get some short-term loans, BP has said it has enough cash resources to meet oil spill cleanup costs without having to make use of these options.
More than just one secured loans is needed by BP
A quick unsecured loans or paydayloans for cash loan solves their financial dilemma and they move on. BP costs are likely to continue to mount higher. As outlined by the Street, BP said this week the costs of cleaning up the oil spill within the Gulf of Mexico had reached $ 2.65 billion. This figure is already more than $ 300 million more than its estimate from the week before. On June 16, BP agreed with the Obama administration to create a $ 20 billion fund to compensate for the economic damage being wrought by the oil spill.
BP needs to discover a way to get debt management
Nobody knows if $ 20 billion could be enough. As outlined by the Associated Press, on July 1 BP’s oil spill became the largest-ever in the Gulf of Mexico. Its damaged oil well has been pumping out oil for about two and a half months now, which has now surpassed the formerly record-setting 140 million gallons spilled by the Ixtoc I spill near Mexico’s coast from 1979 to 1980. It’s doubtful that BP’s short term loan strategy could be adequate to deal with the long-term debt that lies ahead for the Gulf of Mexico.
Discover more about this topic here:
Investment week
investmentweek.co.uk/investment-week/news/1720119/bp-raise-funds-papers
Reuters
reuters.com/article/idUSTRE65G44C20100617?type=ousivMolt
The Street
thestreet.com/story/10796965/1/bp-in-short-term-finance-talks.html?cm_ven=GOOGLEFI
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