Potential BP Bankruptcy?

Bankruptcy Looming for BP?

Even though the source is Cramer he does make some good points. 

begin quote from  article word button "Bankruptcy Looming for BP" above.

It's "magical thinking" to believe the company's cash flow of nearly $7 billion a quarter is enough to get them through the disaster, Cramer said. Virtually any storm that blew through the Gulf of Mexico would "swallow the company," but a big storm “could be a catastrophe for BP." Plus, he thinks a finding of guilt is a "real possibility" once a Justice Department investigation is complete. end quote.

So, as strange as this might sound if the U.S. Justice Department finds BP guilty and the liability floodgates are opened by this determination no one will get anything once BP files Chapter 11 Bankruptcy or sells its assets to another company because there will no longer be a BP to be liable. The most that could happen is that a few executives might wind up in jail. I agree with Cramer that this might be very likely to happen the way things are presently going. However, I think it is presently 50-50 whether BP will still be around 5 years from now. Since the stock has dropped 50% in value investors also reflect this 50-50 attitude. The 50% that think it will be gone have already sold their stocks.