If your business was harmed by the BP Deepwater Horizon (DWH) Oil Spill, you might be eligible for a loan while you wait for your claim to settle.
BP Settlement Lending Program
Since the spill, Case Funding has been providing support to claimants, as well as law firms and CPA firms handling BP claims. To date, over $3.53 billion of claims have been approved and over $2.44 billion has been paid out by the court appointed Claims Administrator, Patrick M. Juneau.
BP claims financing provides an alternative and interim source of funding in situations where a business has a strong legal claim, since conventional lenders generally avoid this market due to its relative complexity and risk.
For Businesses affected by the BP Oil Spill
Qualified businesses with valid BP BEL claims are eligible for loans as they wait for settlement!
Under the Business and Economic Loss (BEL) program, Case Funding will underwrite each application, and approve or deny each application based on the merits of the applicant’s BP Settlement claim.
Advances will be in the form of either a full recourse loan if the borrower is a qualified business entity with a valid BP claim, or in some cases as a non-recourse advance – a purchase of a portion of the contingent proceeds of the claim if the advance is to an individual claimant. Loans to businesses will be cross-collateralized with other company assets and personally guaranteed by its principals.
About the BP Oil Spill
On April 20, 2010, a blowout, explosion and fire occurred aboard the Deepwater Horizon, a semi-submersible offshore drilling rig, as it was engaged in drilling activities on the “Macondo Well” off the coast of Louisiana.
These events led to eleven deaths, dozens of injuries, and a massive discharge of oil into the Gulf of Mexico that continued for nearly three months.
On December 21, 2012, final approval of the Settlement Agreement between BP Exploration & Production Inc. (“BP”) and the Plaintiffs’ Steering Committee was entered in the US District Court for the Eastern District of Louisiana, allowing distributions from the $7.8 billion fund to begin immediately. * BP has since reported that because the Settlement amount is open-ended and the number of claims and the damages are indeterminable, it has increased its loss reserve.
April 20, 2015 marks the 5th year anniversary of the disaster. Up to this day, many victims are still waiting on their settlements. As the June 8, 2015 deadline to file an economic claim against BP approaches, affected business have their last chance to seek for compensation.
The Case Funding BP Settlement Funding Process
Applicants will only be funded if they meet Case Funding’s guidelines, including, among other requirements: (a) the application must pass Case Funding’s legal review performed by an attorney and a financial review performed by a qualified CPA; (b) the applicant must have retained an attorney to file and manage the claim, including the receipt of claim proceeds on behalf of the applicant; (c) the applicant and its attorney must acknowledge Case Funding’s lien on a portion of the claim proceeds; and (d) the applicant’s attorney must agree to pay Case Funding directly from claim proceeds prior to distributing funds to the borrower. Advances will be made only against filed and verified up to amounts approved by Case Funding.