BP To Set Up $20B Escrow Fund For Spill Claims

Law360, New York (June 16, 2010, 1:31 PM EDT) -- Bowing to pressure from the Obama administration and Democratic lawmakers, BP PLC agreed Wednesday to set up a $20 billion escrow fund in order to pay claims arising from the massive oil spill in the Gulf of Mexico and to suspend dividend payments to shareholders for the rest of 2010.

BP said it would make an initial payment of $3 billion into the escrow fund in the third quarter of this year, followed by $2 billion in the fourth quarter and $1.25 billion a quarter thereafter...
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