BP Settlement For Failed Business

I will break the BP settlement agreement out for all the small areas so you  don’t have to read a 1022 page document but can read on only what pertains to you in your settlement.

Every post will start off with the PDF read the PDF and get information about your BP settlement claim.

BP settlement failed business

BP Settlement failed business

 

BP Settlement for Failed Business

It very important to make sure you fit in the definition of a failed business, it is was in business since November 1 2008 and failed between May 2010 – December 2011. If you business started after November 1 2008 they will call your business a failed start up business and you will also have a claim just look in the document for definitions on it.

If you are a failed business in Zone A or a failed start up in Zone A you do not have to prove that the BP oil spill cause your business to fail. Also if your business fits into the definition of seafood related you do not have to prove causation for your business or start up.

If you are in Zone B and you have a tourist related business you do not need to prove that the business failed because of the BP oil spill. If your business failed and you where a charter fishmen in Zone A, B, C you do not need to prove that the BP oil spill was the reason your business failed.

If you have to prove causation What is needed?

Zones A and B

The way you prove causation if you have to is showing a full month with a decline in revenue of 8.5% in revenues or greater for your business. Also the  business owner has to provide documentation and sworn statements that the business was not in default before May 2010 and that no asset liquidation was going on before May 2010. Owner needs to supply corporate books and financial statements from 2009 and 4 month of 2010. All financial statements until the business failed. All credit agreements and financial notes, any note defaults. Any bankruptcy filing after April 2010, any asset sales records, list of any assets that has not been liquidated yet. List of any trade creditor that is still out standing.

Zone C

You have to show 10% revenue decline and the same paperwork as above.

Zone D

You have to show 15% revenue decline and same paperwork as above.

Failed Business Compensation BP settlement

The way you figure the value of your claim for a failed business is as follows. This is only for failed business as per definition about started before November 2008.

Take the last 12 month prior to April 20 2010, and take the Earnings before interest, taxes, depreciation and amortization now find your business in the list below and find your multiplier.

41 Local And Suburban Transit And Interurban Highway Passenger Transportation 3.1x
42 Motor Freight Transportation And Warehousing 2.9x
44 Water Transportation 7.1x
45 Transportation By Air 4.6x
47 Transportation Services 3.6x
48 Communications 5.5x
50 Wholesale Trade-durable Goods 5.0x
51 Wholesale Trade-non-durable Goods 3.9x
52 Building Materials, Hardware, Garden Supply, And Mobile Home Dealers 3.4x
53 General Merchandise Stores 1.5x
54 Food Stores 2.4x
55 Automotive Dealers And Gasoline Service Stations 1.8x
56 Apparel And Accessory Stores 2.6x
57 Home Furniture, Furnishings, And Equipment Stores 3.5x
58 Eating And Drinking Places 1.9x
59 Miscellaneous Retail 3.2x
65 Real Estate 2.8x
70 Hotels, Rooming Houses, Camps, And Other Lodging Places 1.8x
72 Personal Services 2.3x
73 Business Services 4.4x
75 Automotive Repair, Services, And Parking 3.3x
76 Miscellaneous Repair Services 4.0x
79 Amusement And Recreation Services 2.1x
81 Legal Services 3.2x
82 Educational Services 4.6x
83 Social Services 4.1x
87 Engineering, Accounting, Research, Management, And Related Services 5.0x

After you take the earnings times your industry multiplier you will come up with your Total Enterprise Value (TEV) from that number you have to subtract any asset you have liquidated and gotten paid for. Its a very complicated calculation and I would suggest anybody to give this over to an Attorney and let their CPA get you numbers together and find the claim amount for you.

 

Compensation For Failed Start Up Business in BP settlement

I want to say read the document above about this I am not sure that I totally understand it so I don’t want to write something wrong about it here but have your attorney advise you on this.

 

What failed business does not fit the BP settlement

If you business was running negative before the BP oil spill and your business was insolvent prior to the BP oil spill you cannot file a claim with the BP settlement. They use the fancy word negative EBITDA and I looked it up and it just means negative Earnings before interest, taxes, depreciation and amortization. (they could have just written that). So if you had negative earnings before the oil spill in your business or start up business you do not have a claim with the BP settlement

BP VOO Claims