Can anyone name a huge mutinational industrial company that went bankrupt? Please don't use the U.S. car companies as examples. Their overseas presence was a joke compared to a BP.
Hey, Moron, corporate BK (Chapter 11) does not mean liquidation; it means reorganization, downsizing, shareholder reduction, much pain and future takeover target. So, answer the question, can you spell Bopal, India? UNION CARBIDE?
Whatever happened to that arrogance!?
Most multinationals don't usually file bankruptcy, they get bought out on a fire sale or merge before they reach that stage.
The only two examples I could find, since you wanted significant European presence, restricted the industry and wanted a big example are possibly Fairchild Industries an the Dutch East India Company. BA and BAC got close.
Although the odds of a 0 value equity price are low (but not zero) elements of the company with assets of some value could be spun off using warrants which would leave the primary shareholders holding the proverbial bag.
I'm expecting elements of BP to be spun off and then the shell bought out by someone not expected, like maybe one of the oil companies controlled by Chavez of Venezuela
"Most multinationals don't usually file bankruptcy, they get bought out on a fire sale or merge before they reach that stage."
And that my friends is a perfect example of a well written horse shit.
Companies who are driven to bankruptcies due to their liabilities do NOT get bought out. Ordinarily no company that is being bought out brings liability to the table and acquiring company ends up with assets only.
When BP goes bankrupt it will not be because they weren't making money or short of cash...They would be going out of business because of their recent liabilities that would break them. In this case, regulators are not about to allow BO just to sell their assets and walk away from $100 billion plus damage they leave behind. And NO company in their right mind will take those on. If they were doable, BP would be doing it.
I have to say I believe bankruptcy is remote. But it doesn't matter what I think...as long Obama talks and promotes the media to continue wild ass speculation the pressure on BP will be relentless.
For bankruptcy the ability for BP to pay claims has to be swamped by liability payments (not claims). That is near impossible unless the government demands it pay all at once regardless of actual claims. This company is not reliant on short term debt like the financial companies were, so the attack on the share price does not increase likelihood of BK like it did with Lehmann.
Doesn't mean this won't go to $5. The media has been completely irresponsible in its focus on BP. How does Haliburton and Transocean stay out of all of the discussions?
All that said, I wouldn't touch this stock at this price. The best "bet" may be to play both puts and calls for it to break one way or another.