GM filed for Chapter 11 reorganization in the Manhattan New York federal bankruptcy court on June 1, 2009, at approximately 8:00 am EDT. June 1, 2009, was the deadline to supply an acceptable viability plan to the U.S. Treasury. The filing reported US$82.29 billion in assets and US$172.81 billion in debt.
While the average length of a Chapter 11 Bankruptcy case can last 17 months, larger and more complex cases can take up to five years. And following the conclusion of the bankruptcy case, it can still take months for Debtors to begin distributing payouts to the highest priority class of Creditors.
June 1, 2009 - GM files for Chapter 11 bankruptcy protection at the U.S. Bankruptcy Court in the Southern District of New York.
The new GM, which emerged after the old GM went through bankruptcy, has no publicly traded stock right now. Investors who own Motors Liquidation shares did not and will not get new stock in the restructured GM when the company makes its initial public offering. It sure sounds like the old GM stock is worthless.
In the Chapter 11 case filed by a corporation, limited liability company, or other nonindividual, the debtor receives a discharge when a plan is confirmed by the court. ... A debt that is discharged is a debt for which the debtor is no longer liable, except as provided in the Chapter 11 plan.
It's up to you if you want to accept it. It's a common fear around filing for bankruptcy — that it means you'll lose your house. While it's true that can happen, it's by no means a foregone conclusion.
Production quality fell because of a hostile UAW workforce that didn't particularly take pride in building the world's best cars. And there were so many competing models and brands, with little product differentiation, causing confusion among customers. GM's market share fall steadily.
In the past, the U.S. government was a majority shareholder in the company (after the 2008 bailouts). However, in 2010 GM broke free from the government's yoke and was reborn in its current incarnation. Today, the top three individual GM shareholders are Mary Barra, Mark Reuss and Dan Ammann.
General Motors filed for bankruptcy early Monday, marking the end of an era for GM, as the troubled automaker now represents the largest bankruptcy in history. Once the world's largest automaker, now the ailing giant will be forced to close more than 10 plants and cut more than 20,000 jobs.
Someone holding a long position (owns the stock) is, of course, hoping the investment will appreciate. A drop in price to zero means the investor loses his or her entire investment – a return of -100%. ... To summarize, yes, a stock can lose its entire value.
Top 10 Owners of General Motors Co
| Stockholder | Stake | Shares owned |
|---|---|---|
| Capital Research & Management Co.... | 6.26% | 90,122,701 |
| The Vanguard Group, Inc. | 5.92% | 85,272,471 |
| Capital Research & Management Co.... | 5.61% | 80,805,672 |
| Berkshire Hathaway, Inc. (Investm... | 5.03% | 72,500,000 |
The U.S. government lost $11.2 billion on its bailout of General Motors, according to a 2014 government report. The government invested about $50 billion to bail out GM as a result of the company's 2009 bankruptcy, and at one time held a 61 percent equity stake in the Detroit-based automaker.
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