BP Tentatively Gives Nod to $20 Billion Escrow Fund
June 16, 2010
(ChattahBox)—The New York Times is reporting that BP executives, chairman of the board, Carl-Henric Svanberg and chief executive Tony Hayward agreed to pay $20 billion into an escrow fund to pay claims from the victims of the Gulf oil disaster. The details are still being ironed out, between BP and White House officials, but it looks like an independent fund will be created to pay claims in a timely manner.
The Gulf disaster fund would be independently run by the White House pay czar Kenneth Feinberg, “the mediator who oversaw the 9/11 victims compensation fund, according to two people familiar with the deliberations.”
The preliminary terms would allow BP to deposit the funds over time and the $20 billion amount would not be a cap:
“The agreement was not final and was still being negotiated when President Obama and his top advisers met Wednesday morning with BP’s top executives and lawyers. Its preliminary terms would give BP several years to deposit the full amount into the fund so it could better manage cash flow, maintain its financial viability and not scare off investors.”
The tense meeting between BP and President Obama convened this morning, after Obama’s oval office address to the nation last night, pledging that BP would pay for its recklessness in its operation of the Deepwater Horizon oil rig.
As soon as the showdown meeting between BP and the Obama administration ends, Obama is expected to make a few remarks before the press.