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The Cost of Litigation

13 December 2013 by HCM

Today the past came back to haunt APC ( Anadarko Petroleum Corporation). A judge ruled that APC and its unit Kerr-McGee acted improperly in the 2005 spinoff of Tronox – which was burdened with environmental debts and eventually went bankrupt in 2009 – and may have to pay between 5 and $15 billion in order to contribute to environmental cleanup and health claims. APC, one of the most actively traded names in the energy sector with an open position of $18.5bln and an average daily volume of $35m since the beginning of November, widened by 16bps today and stands out as the only US name in the energy sector to be wider over the last month.