NEW YORK (TheStreet) -- BP (BP) may be forced to resume paying compensations to the victims of the 2010 Deepwater Horizon explosion after a federal appeals court denied the company's bid to keep an injunction in place, the Financial Times reported.
On Tuesday, the Fifth Circuit appeals court denied BP's request to keep payments on hold while the U.S. Supreme Court decides whether or not to take over the case.
The company is planning on filing a second appeal in order to keep from being forced to distribute payments, the FT said.
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In October, BP was able to halt payments to local businesses after claiming many that filed for compensation, citing losses as a result of the oil spill, were not damaged in anyway and therefore not entitled to restitution.
TheStreet Ratings team rates BP PLC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate BP PLC (BP) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income."