BP (NYSE:BP) has agreed to set aside $20 billion in order to pay for legitimate claims for those who have been affected by the Gulf oil spill.
In order to protect the company from financial strain which could do them harm and possibly keep them from fulfilling their obligations, BP will pay out $5 billion a year over four year period for claims.
Overseeing the fund will be Kenneth Feinberg, which will include a panel of three people who will mediate any disputes that arise.
BP also agreed to suspend their dividend through the third quarter, which basically gives investors and shareholders a better overall picture of the liabilities the company will face over the next several years, although that is sure to rise beyond the money already on the table.
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