Kenneth Feinberg, administrator of the $20 billion compensation fund for victims of BP Plc’s Gulf of Mexico oil spill, said he anticipates half that amount will be sufficient to cover claims for economic losses.
The fund, established by BP after negotiations with the Obama administration, also pays clean-up costs. While Feinberg told Bloomberg Television today that it is too early to project how much will go to individuals and businesses, he estimated $10 billion may be enough to compensate victims.
“It remains to be seen, but I would hope that half that money would be more than enough to pay all the claims,” Feinberg said.
The Gulf Coast Claims Facility has paid about $2.7 billion to more than 170,000 claimants, mostly in temporary, emergency payments. The facility has received more than 468,000 claims, according to its website. Feinberg said many claims lacked sufficient documentation to warrant payment.
“We’ll bend over backwards to pay claims,” he said.
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