Feinberg: He's Not Writing Checks Because BP Hasn't Put Money In Liability Account Yet

There may be a perfectly reasonable explanation for this shocker. But then, considering how many things BP has misrepresented to regulators and the media, perhaps not so much. I have to say, between this and reports that BP is not paying its cleanup contractors, I wonder if this is a company that's planning to file for bankruptcy:

BAYOU LA BATRE, Ala. -- Ken Feinberg said today he hasn't been able to start writing claims checks because BP PLC has not yet deposited any money into the $20 billion escrow fund it promised to create.

Feinberg, who was appointed last month to administer individual and business claims stemming from the oil spill, held an early morning town hall meeting in Bayou La Batre on Saturday before meeting with the Press-Register editorial board in downtown Mobile.

Feinberg said he is leaning toward giving partial payments to companies and people who are indirectly impacted by the spill -- an outlet store in Foley hurt by the decline in beach traffic, for example.

He also said he would do something for real estate owners to cover a decrease in property value.

BP officials and President Barack Obama agreed last month that the oil company would put $5 billion a year over the next four years into an account to pay for spill-related costs, such as claims, environmental restoration and cleanup costs.


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