Tuesday, August 21, 2012

Economic Damage Claim Process for Deepwater Horizon Claimants ($CNRD)

Based on a disclosure in the Conrad Industries earnings release, the DWH economic damage claims process [pdf] may be relevant in thinking about a hidden asset of theirs. Here's some relevant material that I found:

Generally, a Business Claimant must submit (1) a completed Claim Form verified by the Claimant; (2) documents reflecting the business structure and ownership of the Claimant (including articles of incorporation, shareholder lists, and partnership agreements); (3) Federal tax returns (including all schedules and attachments) for the years included in the Claimant-selected Benchmark Period, 2010, and, if applicable, 2011; (4) monthly and annual profit and loss statements (or alternate documents establishing monthly revenues and expenses) for the claimed Benchmark Period, 2010 and if applicable, 2011; and (5) copies of any applicable federal, state, or local governmental license required to operate the business.
The Benchmark Period is the pre-DWH Spill time period which claimant chooses as the baseline for measuring its historical financial performance. The claimant can select among the following Benchmark Periods: 2009; the average of 2008-2009; or the average of 2007-2009, provided that the range of years selected by the claimant will be utilized for all Benchmark Period purposes.
Step 1 of the compensation calculation is determined as the difference in Variable Profit between the 2010 Compensation Period selected by the claimant and the Variable Profit over the comparable months of the Benchmark Period.
Step 2 of the Compensation Calculation for Business Economic Loss Claims is intended to compensate claimants for incremental profits the claimant might have been expected to generate in 2010 in the absence of the spill, based on the claimant’s growth in revenue in January-April of 2010 relative to the claimant-selected Benchmark Period

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