Top 10 largest bankruptcies in US history
It should be noted that some of the organizations that underwent massive bankruptcies have since recovered due to various measures put in place including government bailout. However, most have failed to jumpstart due to the depth of the crisis and the irreversibility of the bankruptcy situation. Some of the CEOs and fraudulent management have since been prosecuted, with other investigations ongoing. Here is the list:
The financial crisis had been devastating effects on most firms in the US, Thornburg Mortgage was just one of them. The aftershocks of house crash in the year 2009 wielded a heavy blow on the mortgage lender to the extent that it became bankrupt with a mere 36Billion valuation. This led to the effective liquidation of the company to prevent further losses.
Before the 2008 crisis, Chrysler seemed to be an unshakable company, having been in existence for decades. But the decapitating effects of the crash became a resounding proof that every company-irrespective of years of operation-can crumple down to its knees, especially when there are no concrete plans and effective preparation for the worst. Obama lobbied for the firm's declaration of bankruptcy at the time when it was valued at nearly 40Billion. In effect, United Automobile took control, leading to its profit-making 2 years later.
As a symbol of America’s industrial might and one of the country’s backbones to the economy, General Motors dodged the deadly financial crash blow after it declared bankruptcy in 2009. It was valued at 91 billion then, and the government immediately came to its rescue with a bailout plan. But GM should have seen it coming, as the sales volume had already weakened for decades prior.
As the US was nursing its financial crisis wounds in 2011, the EU was sinking deeper into a debt crisis. With brokerage operations in both the US and Europe, MF Global found it hard to steer clear from the pressures on both sides, lending to its bankrupt situation in the month of September that year, with the then valuation of 41Billion.
During the last decade of 20th century, Conseco—an insurance and financial firm—made aggressive acquisitions of a number of companies. The bad move moment happened when it acquired Green Tree Financial firm that finances mobile –home sales. The acquired firm became a slow poison to the performance of Conseco, hence the bankruptcy in 2002 with the then valuation of 61 Billion.
Everybody knows about the Enron bankruptcy and its eventual demise. While it was a promising company, the firm met is death in the year 2001. The Energy giant’s fate was architected by heavy and interwoven scandal that was a product of massive accounting malpractices. The firm’s worth stood at 65 Billion when it ceased its operations.
The firm became bankrupt at a time when it was valued at 691 Billion. This happened during the height of the 2008 meltdown. The government controversially made an attempt of bailing out the investment giant. But eventually, the firm got liquidated.
The group, in the year 2009 vigorously expanded without a proper plan. Given the tremors of the financial crash at the time, the finance lending firm found itself in a credit crunch vicious cycle which spun for less than 40 days before TARP came to its rescue. At bankruptcy, CIT Group was valued at 80Billion.
The CEO collaborated with the accountants of the firm to engineer malpractices that led to the telecom giant staring at the extinction on the face. It was valued at 103Billion when it succumbed to bankruptcy. When the whole thing was unearthed, CEO was jailed for a lengthy term. Things can only get better, as the firm emerged from hibernation in the year 2004, only to be acquired a little late in 2005 by Verizon.
Pacific Gas and Electric Co
By the time it crumbled to bankruptcy, the company’s value stood at aproximately 36 Billion dollars. The company became a victim of the rampant blackouts that crippled activities in the California during the year 2000 and spilling to the following year. But the main cause of all the woes was the deregulation policies instituted in the state during the year 1996. The company recovered in the year 2004 after implementation of tough measures.
My name is Craig R. Chlarson. Whether you are seeking to eliminate your debt, typically through a chapter 7 filing, or whether you are seeking to reorganize your debt, typically through a chapter 13 filing, or even if you have basic bankruptcy questions, call me today. I can help you.
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