Liberal Forum

RebelGator » 19 minutes ago » wrote: ↑

19 minutes ago

In 2008, GM faced a financial crisis, leading to a government bailout and ultimately, a bankruptcy filing in 2009, where stockholders saw their investments wiped out as the company restructured and emerged as a new entity. 
Here's a more detailed breakdown:

• Financial Crisis:
  GM struggled with declining sales and high costs, exacerbated by the 2008 financial crisis. 
• Government Bailout:
  The Bush and Obama administrations intervened with a bailout package through the Troubled Asset Relief Program (TARP) to prevent the company's collapse. 
• Bankruptcy Filing:
  Despite the bailout, GM filed for Chapter 11 bankruptcy protection in June 2009, the largest industrial bankruptcy in history. 
• Stockholder Losses:
  GM's common stock became worthless, and stockholders saw their investments wiped out as the company restructured. 
• New GM:
  The new GM emerged from bankruptcy in 2009, with the government holding a significant stake in the company, which was later sold off. 
• Motors Liquidation Company:
  The old GM's common stock became Motors Liquidation Company (MLCQ) stock, which traded on the over-the-counter market until the bankruptcy plan canceled the shares in 2011.