BP plc (NYSE: BP) has halted payment from its Gulf Coast Claims Facility. The fund was set, under pressure from the US governemnt, to provide as much as $20 billion for Gulf clean-up and claims which would arise from businesses and individuals with financial claims due to the disaster.
The United States District Court for the Eastern District of Louisiana want 6% of the funds money put into escrow. BP will hold off use of the fund, it says, until the matter is settled
On the Gulf Coast Claims Facility website, the following notice was posted
In an Order and Reasons of the United States District Court for the Eastern District of Louisiana, dated December 28, 2011, the Gulf Coast Claims Facility (“GCCF”) has been ordered to withhold 6% of any and all amounts determined to be paid to eligible GCCF claimants to be deposited into a Court supervised Escrow Account. The purpose of the Escrow Account will be to establish a fund from which common benefit litigation fees and expenses may be paid to the Plaintiff Steering Committee and other lead or liaison plaintiff counsel if and when awarded by the Court. The GCCF seeks clarification of the Court’s Order. Accordingly, until such clarification is received from the Court, the GCCF will halt any and all payments to be made to eligible claimants, effective December 30, 2011.
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