Big Business Bankruptcy
Arriving at the decision to declare business bankruptcy is never taken lightly. The process comes with all sorts of reservations and thoughts like, “Isn’t there something more I can do?” or “Where did it go wrong?” Every effort is made to save the business, but sometimes even the best efforts aren’t enough and liquidation becomes necessary. While this may make some feel like they’ve failed, it’s important to remember that even major corporations and entire countries have declared bankruptcy throughout history.
Here, to prove you’re not alone and that even the big hitters get it wrong sometimes, is a list of some of the biggest cases of business bankruptcy in history:
General Motors (GM) – The news was flooded in the summer of 2009 with stories of the plight of Detroit, Michigan and the General Motors petition for Chapter 11 bankruptcy. To put things in perspective, GM was the #1 automaker in the United States at the time and their assets were upwards of $80 billion.
Texaco – One of the longest running fuel companies in the United States, Texaco filed for Chapter 11 in the late 80′s when its assets were near $35 billion.
United and Delta Airlines – in 2002 and 2005 respectively these two major airlines made their bankruptcy appeals to the court. They were both able to avoid complete liquidation and are still in operation today.
Argentina, Iceland & Pakistan – That’s right. Even entire governments can’t salvage their countries’ debts sometimes. Each of these three countries’ governments have gone bankrupt, and all within the past 15 years, no less.
Lehman Brothers – The biggest bankruptcy filing in United States history belongs to this major, international financial services firm. The Lehman Brothers appeal caused one of the biggest Wall Street panics in history as a result of its $690 billion+ in assets. The firm was ultimately bailed out and is still in operation.
While bankruptcy doesn’t necessarily mean the end for a business often times at least a partial liquidation of assets is necessary as part of making required re-payments to creditors.
For more information on bankruptcy and the liquidation, please visit our website here. Or to contact us please fill out the Quick Contact Form to the left hand side of your screen.