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La. Treasurer warns BP could file bankruptcy

POSTED: Friday, June 11, 2010 - 4:08pm

UPDATED: Wednesday, November 10, 2010 - 4:44pm

BATON ROUGE (NBC33) - As the cost of the gulf oil cleanup rises, there are growing concerns BP doesn't have enough cash to cover it.

The estimated cost of the clean up is up to $23 billion.

State Treasurer John Kennedy says BP only has between $10 to $20 billion in cash on hand.

Today, he warned Governor Bobby Jindal to have a backup plan.

"We could walk in here Monday morning, and BP could be in chapter 11 bankruptcy," says Kennedy.

"We could be under the jurisdiction of the federal court. All monies would stop. We may even have to return some of the money they've given to us."

In a statement released to NBC33, BP officials said, "The company isn't in talks with any bankruptcy lawyers. In fact, the company is in a robust situation to confidently fulfill all of its obligations."

BP has paid out $1 billion since the start of the spill.